Privatising PSBs won't impede financial inclusion, says FM

Finance minister Nirmala Sitharaman on Tuesday said the perception that when public sector banks (PSBs) are professionalised or privatised, financial inclusion goals could not be achieved is incorrect.

- RUCHIKA CHITRAVANSHI & ASIT RANJAN MISHRA

“Despite 50 years of nationalisation, the objectives of financial inclusion could not entirely be achieved. After we professionalised the banks, those objectives were beautifully achieved. So the perception that when you try to bring in banks to become professional and if you want to privatise them — which is a Cabinet decision — that the objective of reaching all people, taking banking to everybody will be lost is incorrect. Once you allow banks to function professionally, and allow them to have board driven decisions, every objective of national interest and banking interest will be served,” Sitharaman said while delivering the Valedictory Lecture at the Delhi School of Economics.