President Murmu urges banks to prioritise financial inclusion, rural empowerment

CHENNAI: President of India Droupadi Murmu on Tuesday underscored the need for banks to strengthen financial inclusion and support the rural economy, stating that financial services must reach every citizen, particularly those in remote areas.

Delivering the keynote address at the 120th foundation day celebrations of City Union Bank at the Chennai Trade Centre here, the President said that India's economy, one of the fastest-growing among large nations, depends significantly on the banking sector's role in enabling inclusive and sustainable growth.

“Banks are no longer mere custodians of wealth. They have evolved to provide diverse services and are central to inclusive development,” Murmu said. She emphasised that financial inclusion—ensuring access to affordable financial services for all—remains a critical pillar of national progress.

The President acknowledged the contribution of banks and Fintech firms in offering mobile-based services, microloans, and insurance products tailored for underserved communities. She noted that payment banks, digital wallets, and banking correspondents have brought services closer to rural households.

At the same time, she cautioned that challenges persist in terms of digital literacy, internet connectivity, and financial awareness. “With collective efforts, people can be better integrated into the banking system through technology and literacy,” she observed.

Murmu stressed that empowering farmers and the rural economy should be a central priority for banks. By extending timely and affordable credit, improving financial literacy, and supporting agri-tech initiatives, banks could make agriculture more sustainable and profitable, she said. She further highlighted the importance of aiding daily wage earners, migrant workers, and marginalised groups by ensuring their full participation in formal banking.

She also called upon banks to facilitate the growth of micro, small, and medium enterprises (MSMEs), which she described as engines of economic growth. She urged the sector to extend its support to start-ups, smart cities, and other emerging areas that are shaping India's digital and knowledge-driven economy.

“Banks can become active partners in building a developed India,” Murmu said, reiterating that their expanding role would be vital in the country's future growth trajectory.

Union Finance Minister Nirmala Sitharaman, Governor RN Ravi, State Minister P Geetha Jeevan, and other dignitaries attended the event.