Financial institutions

Financial institutions need to be more people-centric in the next 25 years: FM Sitharaman

Finance Minister Nirmala Sitharaman on Thursday urged financial institutions like Sidbi to be more people-centric over the next 25 years to put the economy on a higher growth path.

The government has referred to the next 25 years leading up to the 100th anniversary of India’s independence as “Amrit Kaal”. “So for the next 25 years, we (financial institutions) need to be much more people-centric. Try to see what they want…

“It will make people from this (backward) region pull back and if we can give them a perspective, which is good enough, I think we will address a major human resource issue and also awaken the capacities that are dormant. in the regions,” she said while addressing the 3rd National Microfinance Congress here.

Many states have numerous checking and savings account (CASA) funds that are not effectively deployed in these regions because there are no large businesses, she said.

As a result, she said, the impression one gets is that CASA funds from these states are being transferred to business-rich areas that can absorb this kind of money.

“Now this can gradually lead to a situation where our savings are not used for our business, the development of entrepreneurship,” she said.

It should be the job of institutions such as the Small Industries Development Bank of India (Sidbi) to stimulate credit growth and help develop the ecosystem of entrepreneurship in backward regions, she added. .

Observing that there is definitely an overhaul in the economy going on post-COVID, she said people are now opting for entrepreneurship.

Citing the example of the “One District, One Product” program, she said it is taking off very well.

The main philosophy behind the program is to select, brand and promote a product from each district that is unique to that district, which will drive employment and contribute to growth.