States must work closely with banking sector to ensure credit flow to all'

Banking system, debt market need improvement: Minister

 

SPECIAL CORRESPONDENT 

CHENNAI

It is in the interest of the States (which do not control the currency and repo rates) to work closely with the banking sector to ensure that the lifeblood of credit reaches everyone in a timely manner, Finance Minister Palanivel Thiaga Rajan said.

 

Delivering the keynote ad- dress at the Confederation of Indian Industry's event, needed. "The India Finance Forum (TIFF) 2022', he pointed out that the Indian banking system and debt market needed a lot of improvement.

The 12th edition of TIFF was held virtually, on the theme: 'Beyond Resilience: Turnaround & Transformation'.

 

Mr. Rajan noted that the unsecured credit growth in India had been very poor, cooperative which was acting as a stum bling block, especially to social justice and equality and ensuring economic fairness. He said he had made it a point to attend all State Level Bankers' Committee meetings, and had sought data on the performance of each bank branch to get a sense of what was happening and take necessary action, if

 

Mr.Rajan reaffirmed his point about closing the gap between the stated intent and the outcome. As an ex- ample, he pointed out that while the Union government and the RBI had announced various COVID-19 relief measures for MSMEs, there was a lack of awareness at the branch level. He reiterated the need for improving

 

federalism, where the Union government sets the agenda and drives the vision, and needs the States and local bodies to execute them, especially to reach the middle and the. bottom of the pyramid. He stressed the need to improve the administrative capability in government, citing the re cent example of a shortage of IAS officers at the Central and State levels. He also fc under scored the need to improve the GST system.

 

In her keynote address, Rupa Dutta, Principal Adviser, Department for Promotion of Industry & Internal Trade, Ministry of Commerce & Industry, Government of India, highlighted the measures taken by the Centre during the pre-CO VID and COVID period.

 

Media: The Hindu