Finance Minister Nirmala Sitharaman Encourages Banks to Mobilize Deposits through Innovation

Saturday, 10 August 2024, 14:34

Finance Minister Nirmala Sitharaman has called on banks to prioritize their core business strategies while developing innovative products to attract household deposits. With a noticeable shift of savings towards alternative investments, banks are encouraged to adapt and find new methods to engage customers. By leveraging technology and understanding consumer needs, financial institutions can effectively increase their deposit base. In conclusion, focusing on innovation in core services is critical for banks to sustain growth in deposit mobilization.
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Finance Minister Nirmala Sitharaman Encourages Banks to Mobilize Deposits through Innovation

Introduction

Finance Minister Nirmala Sitharaman on Saturday urged banks to concentrate on their core business and find innovative approaches to attract deposits. The call comes in response to a growing trend where household savings are gravitating towards alternative investment options, posing challenges to traditional banking.

Importance of Core Business Focus

According to Sitharaman, it is essential for banks to strengthen their core operations, as this will help them maintain their relevance in an ever-evolving financial landscape.

Innovative Approaches to Mobilize Deposits

  • Explore new products tailored to modern consumers.
  • Utilize technology to enhance banking services.
  • Engage customers with targeted marketing strategies.

Conclusion

In light of recent shifts in consumer behavior, it is imperative that banks innovate while remaining focused on their fundamental services. This dual approach will position them better to capture a larger share of the deposit market and ensure long-term sustainability.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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