Empowering Local Language in Banking: A Call by Finance Minister

Union Finance Minister Nirmala Sitharaman has called on public sector banks to enhance their engagement with customers by ensuring branch staff are proficient in local languages. Speaking at an SBI event, she stressed that effective communication is crucial for customer relations and urged changes in recruitment and appraisal policies to prioritize language skills.

In light of recent criticism faced by bank officials for their linguistic shortcomings, Sitharaman emphasized the necessity of local language fluency at branch levels, suggesting it should play a critical role in staff appraisals. She highlighted the need for a personal touch, recalling the practices of older private banks that maintained close ties with customers.

Sitharaman also pointed out the drawbacks of relying heavily on credit information companies, which often delay loan approvals due to outdated data, leading customers to informal lenders. She urged banks to take proactive measures to improve their customer service and become more people-friendly institutions.