'Banks need to focus on deposits'

FINANCE minister Nirmala Sitharaman on Saturday stressed upon the importance for the banks to focus on their primary banking activities, specifically in terms of collecting deposits and providing loans to those in need of financial assistance.

- MONIKA YADAV

Speaking to the media following the Reserve Bank of India's (RBI) board meeting, the minister said deposits and lending are akin to the two wheels of a cart, noting that "the deposit is moving slowly."

To address the imbalance between deposits and lending, Sitharaman urged the banks to develop "innovative and appealing" deposit schemes to attract funds from the public. Meanwhile, RBI Governor Shaktikanta Das stated that interest rates are deregulated, allowing banks to increase deposit rates to draw in funds. "Banks are free to decide on their interest rates," he noted.