Banks should adopt digitization to take government schemes to the needy: FM Sitharaman

Finance Minister Nirmala Sitharaman on Sunday said that apart from adopting financial inclusion for wider reach, banks including the private sector should adopt digitization to ensure that government schemes reach the poor and downtrodden.

Delivering her address at the centenary celebrations of the city-based Tamil Nadu Mercantile Bank, Sitharaman said that even during the Covid-19 pandemic with the use of digitization through banking correspondents, the government’s financial disbursements are distributed to the needy after verifying their details. were done.

“The Prime Minister (Narendra Modi) clearly knew that banking is important and did not hesitate that there could be zero balance accounts, if they were opened under the Jan Dhan Yojana scheme (launched in 2014) But he ensured that everyone should have a bank account and be able to transact through RuPay cards,” she said.

Stating that the government disbursed Rs 1,500 in three installments to the needy through their bank accounts during the COVID-19 outbreak, he said a lot of changes are taking place in the banking sector through digitization at a “fast pace”. .

“There is no need to open a branch in a place where there is no bank. Today, to access the bank account of the people living there, all kinds of technologies are available… Anyone from Tuticorin can also do the service. Technology through the banking needs of the people living in small villages”, she said.

“For any bank, especially a bank like Tamil Nadu Mercantile Bank, to be more efficient, there is a need to adopt complete technology solutions,” she said.

He said, “Financial technology is the biggest area today and using this we can be able to fill the data in forms. It can be related to income tax or GST. Auto-populating data (of a consumer) has been very useful. “

He said that auto-populating data can only be done through ‘digitisation’ and the management of TMB should think of greater use of digitisation.

He said, “There is a lot of potential for banking. I think it is important to bring in full digitization. Digitization cannot be avoided for your own good and the customers.” customers and ensure that financial inclusion is implemented.

Today you are presenting a check to a lady who runs a business by selling ‘Idlis’ in her pushcart, said Sitharaman after providing financial assistance to a beneficiary of Tamil Nadu Mercantile Bank under ‘PM Svanidhi Yojana’ Are able financial assistance because there is a scheme like PM Jan Dhan Yojana (Financial Inclusion Scheme).

He said, “If that scheme was not available then today you would not have been able to distribute assistance to the woman. If PM Jan Dhan Yojana had not been started in 2014, it would not have been possible.”

74 per cent of Tamil Nadu Mercantile Bank’s business was through “priority” sector lending and through this the banks were able to expand into rural areas.

He said that during the outbreak of COVID-19, the Center launched the Emergency Credit Guarantee Liquidity Scheme to enable MSMEs to do business without requiring any additional collateral.

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