NEW DELHI: North Block has asked public sector banks to initiate a month-long consultation process with officers starting at the branch level to seek suggestions for preparing the future roadmap of the banking sector.
“Branch level credit growth, non-performing assets recovery, performance of schemes such as Mudra would be reviewed,” said a person familiar with the directive.
The department of financial services has also circulated papers on nine subjects including digital payments, corporate governance, MSME credit authored by Nandan Nilekani, Uday Kotak, UK Sinha and Soumya Kanti Gosh.
The move comes in the backdrop of a meeting held by finance minister Nirmala Sitharaman with public sector and private sector bank chiefs recently.
The suggestions emanating from a monthlong campaign beginning Saturday will be used as inputs to chalk out a strategy for the future growth of the banking sector.
According to a communication by the ministry to the heads of PSBs, it will be a bottom-up consultative process from the branch level onwards which will involve discussions at the branch or regional level, state and national level.
The campaign envisages not only performance review but synchronisation of banking with region-specific issues and their growth potential.
It is aimed at aligning the banking sector with national priorities, stimulating ideas and inculcating a sense of involvement among bankers at the branch level.
Consultations will seek to find solutions for enhanced ease of living, making banks more responsive to customers and challenges before them and their preparedness in areas such as cybersecurity and data analytics.
Focus will be on raising credit offtake for supporting economic growth and credit support to infrastructure and the role of the banking sector in doubling farmers’ income and water conservation.
The emphasis will also be on supporting the green economy, improving education loans and other sectors such as micro, small and medium enterprises (MSMEs) and exports.
In addition, the stress will be on pushing the digital economy and financial inclusion, it said.
It will split into three stages with the first being at the branch or regional level, followed by the state level and culminating with a national-level two-days brainstorming in the capital.