President Murmu flags concern on digital literacy, financial awareness
Chennai: President Droupadi Murmu on Tuesday said that despite progress in banking sector, several challenges were still faced in terms of digital literacy and financial awareness among the public.
Empowerment of farmers and rural economy should be a priority for the banking sector, Murmu said at the 120th Foundation Day celebrations of Tamil Nadu-based City Union Bank here.
Banks and financial technology companies offer user-friendly mobile applications and insurance products tailored for underserved communities.
Payment banks, digital wallets and banking correspondents have taken financial services to the doorsteps of remote villages, she said.
Despite progress in this area, Murmu said, several challenges in terms of digital literacy, internet access and financial awareness, remain.
“With combined efforts of all stakeholders, people can be better integrated with banking services through technology, digital and financial literacy,” she said.
Further, banks can play a key role in transforming MSMEs into engines of growth.
“By extending timely and affordable credit, offering financial literacy and supporting agri-tech initiatives, banks can help in making agriculture sustainable and profitable. Banks can play an important role in transforming MSMEs into the engines of growth” she said.
Tamil Nadu Governor R N Ravi, Union Finance and Corporate Affairs Minister Nirmala Sitharaman, TN Minister for Social Welfare and Women Empowerment Geetha Jeevan, City Union Bank Chairman G Mahalingam, the Bank’s MD and CEO N Kamakodi were present on the occasion.
Commemorating the 120th Foundation Day celebrations of the City Union Bank, Murmu said it is a tribute to a century-long commitment to trust, service and progress.
“This is an occasion to recall the consistent contribution of the management and staff of the (City Union) bank, who have over the period, nurtured and shaped the institution,” she said.
Observing that the banking industry plays a pivotal role in the growth of Indian economy, she said the role of banks has expanded beyond financial transactions.
“Banks are not just custodians of wealth. They offer variety of financial services. They are also instrumental for inclusive and sustainable development,” the President said.
By extending timely and affordable credit, offering financial literacy, and supporting agri-tech initiatives, banks can help in making agriculture sustainable and profitable, she said.
“Specialised branches, farmer-friendly products and digital platforms or applications for rural users can significantly bridge the rural-urban divide,” she said.
Referring to the Micro, Small and Medium Enterprise sector, she said it is an ‘extremely’ important area for Indian economy as it generates employment and drives innovation.
Banks can play an important role in transforming MSMEs into the engines of growth, she said.
With digital and knowledge-driven economy keeps expanding, Murmu said the role of banks in digital transformation and entrepreneurship becomes even more crucial.
“From startups to smart cities, there is a whole range of areas in which banks can help. Banks can become active partners in the making of a developed India,” she said.
Calling for more measures towards helping the underprivileged and marginalised sections, Murmu said special efforts should be made for better integrating daily wage earners and migrant labourers with banking services.
The PM SVANidhi scheme has been empowering street vendors by promoting financial inclusion. This benefit has now been extended until March 2030, she said.
The PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme is a fully funded by the Ministry of Housing and Urban Affairs with objectives of facilitating working capital loan up to Rs 15,000, incentivise regular repayment and to reward digital transactions.
