Union Minister for Finance and Corporate Affairs Nirmala Sitharaman chaired a post-budget meeting with heads of banks, NBFCs and financial institutions in Mumbai on Tuesday.
Underscoring the importance of information sharing and collaboration, the finance minister exhorted the banks to sign up to the account aggregator model which would facilitate seamless flow of credit for small borrowers and promote digital lending.
The minister directed that the pilots for account aggregator model and cashflow-based lending may be replicated in different regions in the country including in the north-east, on the lines of the initiative by two banks in Varanasi district.
It was emphasised that digital banking, digital payments and fintech innovations are an opportunity for banks to find new ways to reduce the cost of intermediation and provide cost-effective services and that the benefits of digital banking should reach every nook and corner of the country in a consumer-friendly manner.
The 25th FSDC meeting was attended by Bhagwat Kishanrao Karad, MoS (finance), Shaktikanta Das, Governor, RBI, TV Somanathan, Finance Secretary and Expenditure Secretary, Ajay Seth, Economic Affairs Secretary, Tarun Bajaj, Revenue Secretary, Sanjay Malhotra, Financial Services Secretary, Ajay Prakash Sawhney, Secretary, Ministry of Electronics and Information Technology, Rajesh Verma, Secretary, Ministry of Corporate Affairs, and V Anantha Nageswaran, Chief Economic Adviser.
