New Delhi, Apr 25 (KNN) Domestic consumption continues to drive India’s economic growth, but sustained momentum will require predictable policy support, Union Finance Minister Nirmala Sitharaman said on Friday.
Speaking at an event organised by the State Bank of India (SBI) in Pune, she emphasised that a committee of bankers is examining whether banks should allow exclusive distribution tie-ups for third-party products or move towards an open architecture approach, PTI reported.
The Finance Minister said that domestic consumption can sustain India’s growth, which remains the fastest in the world. She added that while consumption must continue to drive growth, it is equally important to ensure predictable policies.
“Unless our domestic manufacturing, agricultural growth, tourism, IT, and related services sectors are given that constant support, predictable support, India’s growth story will be difficult to keep up,” Sitharaman added.
Banking Sector and Reforms
She urged banks to focus on the physical contact with customers as they go global and digital.
Responding to a query, the minister said a committee under the Indian Banks Association (IBA) is examining whether banks should adopt open architecture or exclusive tie-ups for distributing third-party products.
Sitharaman noted, “The IBA chairman with the IBA will be talking to banks to understand how best to go about it, what are the vulnerabilities by keeping one (entity), by keeping several all these are going to be worked upon.”
“In the coming weeks, there will be a lot of interaction within the banks, understanding where more investments will have to be made, what kind of technologies can come in, how AI itself can be used for countering this AI challenge,” the finance minister added.
(KNN Bureau)
