Banks should embrace digitization to ensure govt schemes reach needy: FM Nirmala Sitharaman

Delivering her address at the centenary celebrations of the city-based Tamilnad Mercantile Bank here, Sitharaman said even during the Covid-19 pandemic with the use of digitization through banking correspondents, the government's financial disbursements were distributed to the needy after verifying their details.

"Prime Minister (Narendra Modi) was clearly aware that banking is important and did not hesitate that there can be accounts with zero balance if they were opened under the Jandhan Yojana scheme (launched in 2014). But he ensured that everyone must hold a bank account and be able to transact through a RuPay card," she said.

Stating that the government distributed Rs 1,500 in three installments to the needy through their bank accounts during the Covid-19 outbreak, she said there are a lot of changes happening in the banking sector at a "fast pace" through digitization.

"There is no necessity to open a branch in a place which does not have a bank. Today, to reach a bank account of the people who live there, all kinds of technologies are available...Even sitting from Tuticorin one can serve the banking requirements of people living in small villages through technology", she said.