- The Finance Ministry has initiated a comprehensive consultative process with public sector banks(PSBs).
- The consultative process will start from branch level upwards to the State-level and then to the national level.
- The process aims to find out the reasons for the sharp rise in bad loans in the previous five years apart from outlining national priorities with which these banks have to align themselves.
- The consultation will cover eight thematic papers which includes (a)enabling bank credit towards a $5 trillion economy (b)increasing digital payments (c)corporate governance (d)credit to MSMEs and (e)farm loans among others.
- The consultative process will also be aimed at alignment of banking with national priorities such as (a)doubling farm income (b)Jal Shakti (c)housing for all (d)education loans (e)ease of living and (f)corporate social responsibility among others.
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