FM Nirmala Sitharaman meets bankers: Banking for Gen Z, deposit mobilisation in focus

Finance Minister Nirmala Sitharaman convened a two-day meeting of public sector banks and the Ministry of Finance to discuss banking requirements for Generation Z and strategies for increasing deposit mobilisation. The meeting, scheduled to continue on Monday, aims to generate practical ideas for banking sector reforms. Sitharaman highlighted that banks are in a stronger position to implement reforms as non-performing assets (NPAs) are at an all-time low, and emphasized the importance of banking that caters to India's youthful population, which constitutes 29% of the country's total.

The meeting focused on seven themes, including 'deposit mobilisation', 'banking for youth', and 'supporting the investment cycle'. Participants discussed the development of new structured products and the requirement of credit flows to meet the GDP needed for Viksit Bharat, which is expected within less than 20 years. The meeting also addressed the rising household debt in India, with non-housing retail loans now accounting for over half of total household borrowings.