Finance Minister Reviews PSB Performance, Stresses on Fraud Prevention

Smt. Sitharaman Chairs Meeting on Public Sector Banks’ Performance in New Delhi

Union Finance Minister Nirmala Sitharaman’s meeting in New Delhi focuses on enhancing Public Sector Banks’ efficiency, fraud prevention, and cyber security.

NEW DELHI – Union Finance Minister Smt. Nirmala Sitharaman chaired a significant meeting in New Delhi to review the performance of Public Sector Banks (PSBs) on various parameters.

The meeting was attended by key figures including Union Minister of State for Finance Dr Bhagwat Kishanrao Karad, Secretary Dr Vivek Joshi, and heads of PSBs.

A major focus was on the National Asset Reconstruction Company Ltd (NARCL) and its acquisition of stressed accounts. Sitharaman urged for improved acquisition efforts and regular meetings between NARCL and banks to expedite the process.

She emphasized the need for PSBs to mobilize deposits, innovate, and offer attractive schemes to enhance their deposit base and extend more credit.

On the topic of fraud, Sitharaman expressed satisfaction with the PSBs’ improved performance but highlighted the critical threat frauds pose.

She instructed banks to focus on large corporate frauds, wilful defaults, and individual customer frauds, advocating for advanced fraud prevention and detection mechanisms.

PSBs were directed to educate consumers on safe banking practices, identify fraud accounts promptly, and intensify recovery efforts from fraud and wilful default accounts.

Sitharaman called for a performance review of counsel representing PSBs and urged banks to take strict action against officials who enable fraud and wilful defaults.

The meeting also addressed cybersecurity, with Sitharaman reviewing PSBs’ preparedness and directing them to ensure customer data privacy.

She stressed the importance of seeing cybersecurity as a system-wide issue, urging banks to adopt proactive measures and stringent security protocols.

Sitharaman highlighted the need for collaboration among PSBs and coordination with security agencies, regulatory bodies, and technology experts to bolster the financial ecosystem against cyber threats.