Mumbai: Banking systems should speak to each other, says FM Nirmala Sitharaman

To ensure better service to customers, Union finance minister Nirmala Sitharaman on Friday urged banking systems to speak to each other. The FM was in Mumbai to deliver the keynote address at the 75th annual meeting of the Indian Banks Association (IBA) and a couple of other events, including the Laghu Udyog Bharati annual day programme.

She said many a times customers are forced to transact with multiple lenders, for which it’s important that banking systems are communicative. She also underlined the need for banking personnel conversing in the local language to serve customers better.

Sitharaman also said it is essential that banks invest in web 3.0 and artificial intelligence (AI) to ensure that frauds are prevented. She highlighted that adequate regulatory vigil and technology upgrades have helped banks prevent frauds to a considerable extent.

Speaking at the Laghu Udyog Bharati event, the minister asked the private sector to clear dues of micro, small and medium enterprises (MSMEs) within 45 days.

In her meeting with big businesses two days ago, she had appealed to ensure that the dues of smaller businesses – who are the backbone of the economy – are cleared in time.

The minister added that the Centre, too, will be taking steps to resolve the issue by ensuring that departments and central public sector enterprises make the payments to small businesses in 90 days.