Nirmala Sitharaman
– Photo: PTI
Expansion
Bank interest rates are stressful for some people. This needs to be reduced. Finance Minister Nirmala Sitharaman said, reducing rates can help achieve the aspiration of a developed India. India needs the industry to move forward and invest in new facilities.
Nirmala Sitharaman said at the SBI event on Monday, when you look at the development needs of India, you may have many opinions coming and saying that the cost of borrowing is very high. When we want industries to move forward rapidly and towards construction, bank interest rates have to be made cheaper. Banks should concentrate on their main function of lending. Mis-selling of insurance products also indirectly increases the cost of borrowing for one. The reach of insurance has deepened due to the distribution of insurance by banks. This has also raised concerns about mis-selling of products. The burden of insurance should not be placed on customers. This is very important from the point of view of increasing people’s confidence in the banking sector.
Development priority for government
Sitharaman said, development is the priority of the government. Inflation is a complex issue that affects the common man. The government is working on supply side measures including edible oils and pulses. Government efforts are mainly focused on improving storage facilities to reduce volatility. Now the time has come for independent rating agencies to decide on our rating upgrade.
Do not want to get into the debate on food prices and RBI MPC rates
The Finance Minister said, I do not want to get into the debate whether food prices should be considered while creating the inflation index or the rates should be decided by the Monetary Policy Committee of the RBI. At present the inflation rate is increasing due to three or four perishable items.
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