PSU banks to launch new products in 3-4 months to ramp up credit growth: Banking Secy

Financial Services Secretary announces public sector banks launching new products to enhance credit growth and financial inclusion.

Financial Services Secretary M Nagaraju on Tuesday (November 26, 2024) said public sector banks will unveil new products in the next few months to improve credit growth.

"We are actually committed to enhancing, and we want to push as much credit as possible because we have a huge number of young people," he said while addressing the Financial Inclusion and Fintech Summit organised by CII.

Public sector banks are going to launch new products in the next 3-4 months to push credit for all sectors, including MSME, he said.

Over the last few years, the government has already taken multiple steps to improve credit availability to small borrowers, including announcing a new credit model in the Budget to lend to borrowers with no previous financial records.

Though the banking sector is robust, Nagaraju said rising digital frauds are posing a risk to financial sector stability, and banks should focus on addressing this challenge.

Both digital innovations and financial literacy will help mitigate this, he added.

Speaking on the sidelines, Nagaraju also said the Banking Amendment Bill tabled in Parliament during the monsoon session will likely be moved in the ongoing winter session.