Governor Verma says banks are partners in nation-building, not just lenders

Mumbai: Maharashtra Governor Jishnu Dev Varma said banks and financial institutions are not limited to disbursing loans. They have an important role in the country's economic development and nation-building, he said, and their contribution is decisive in creating jobs, financing industry and developing infrastructure. According to Varma, the financial sector must play a big role in achieving the goal of Viksit Bharat 2047.

The Governor was speaking at the 21st annual Banking and Financial Sector Conference and Awards, organised by ASSOCHAM at the Four Seasons Hotel in Worli, Mumbai. The theme of the conference was "Resilience, Reinvention and India's Rise". Dignitaries from the banking and financial services sector, industry representatives and policymakers were present.

Varma said the Pradhan Mantri Jan Dhan Yojana, Aadhaar-based services, Direct Benefit Transfer and UPI have made financial transactions easier and more transparent in the country. Crores of people have been able to join the formal banking system as a result.

He made clear that financial inclusion does not mean only opening a bank account or making digital payments. Rural families, the poor and small businesses should also get easy access to services such as affordable credit, insurance and pensions.

Drawing on his experience as Tripura's finance minister, Varma spoke of the economic strength of women's self-help groups. Banks were initially doubtful about lending to these groups, he said, but once loans began to flow, he saw that the women showed discipline in repaying them. He therefore appealed to financial institutions to trust women's capabilities and give them more opportunities.

The Governor said micro, small and medium enterprises create jobs on a large scale in the country, yet many find it hard to get timely and affordable credit. Varma asked banks and non-banking financial institutions to devise new kinds of financing schemes for these enterprises. He also said Maharashtra offers a big opportunity to provide start-ups with capital, working capital and flexible loan facilities.

Speaking on digital banking, the Governor said artificial intelligence, data analytics and digital platforms are making banking services more effective. However, to retain customers' trust, cyber security, data privacy and systems for effective redress of complaints must be strengthened.

Varma appealed to the government, banks, financial institutions and the technology sector to work together to build an inclusive financial system. At the event, the Governor also presented awards to institutions that have done notable work in banking and the financial sector.