Banks should focus on core banking, Finance Minister said- focus on increasing deposits

Shaktikanta Das: Finance Minister Nirmala Sitharaman has instructed all banks to focus on core banking. Also, encourage customers to increase deposits in banks. The Finance Minister said that deposits and loans are the two wheels of a vehicle. Deposits are decreasing, so banks will have to pay more attention to this. On this occasion, Reserve Bank of India (RBI) Governor Shaktikanta Das also said that banks can increase deposits by giving attractive interest rates on them.

If banks introduce good deposit schemes then people will give money

After the 609th meeting of the RBI Central Board of Directors, the Finance Minister said that banks should give loans only to the needy. If banks bring good deposit schemes, people will put their money in them. Banks are free to decide their interest rates. Banks can change them anytime according to their business. The RBI Governor had expressed concern about the changes in the figures of deposits and loans in the banking sector. Concerns are increasing due to the decrease in deposits. Minister of State for Finance Pankaj Chaudhary was also present in this post budget meeting.

Arrangement was also made to increase the nominee for unclaimed deposits

Nirmala Sitharaman said that we have also made arrangements to increase the nominees for the unclaimed deposits lying in the bank account and locker. She said that more retail investors are now entering the stock market. Due to this, the deposits in banks have decreased. If the banks also come up with attractive schemes, then the deposits will definitely increase. She said that no proposal to increase foreign investment in public sector banks is being considered at present.

Union Finance Minister Smt. @nsitharaman addresses the Central Board of Directors of the @RBI with Union Minister of State for Finance Shri @mppchaudhary along with Shri @DasShaktikanta at its customary post-Budget meeting in New Delhi, today. pic.twitter.com/pA7drWyM7w

— Ministry of Finance (@FinMinIndia) August 10, 2024

Unclaimed deposits worth about Rs 78,000 crore are lying in banks

Shaktikanta Das said that the issue of increasing the nominees was pending for a long time. Now the government has made the work of banks easier by making arrangements for 4 nominees. With its help, the unclaimed deposits lying in the banks can also be settled. In the Banking Law Amendment Bill 2024, the central government has made a provision to add the names of 4 nominees in bank accounts and lockers. With this decision, the unclaimed deposits of about Rs 78,000 crore lying in the banks can be returned to the people. With this, now 4 people can be nominated to access the locker.

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