RBI Governor Shaktikanta Das asks PSU banks to digitally enable one district each

MUMBAI: All state-owned banks today in a meeting with Reserve Bank of India governor Shaktikanta Das have agreed to setup enabling infrastructure for digital payments in one district per state over the next one year in line with New Delhi’s digital and financial inclusion objective.
The scheme based on its working feasibility would be integrated with government’s ‘Transformation of Aspirational Districts’ programme, the central bank said in a press release on Friday. Under the Aspirational District programme, which was launched in January 2018, mandates corporates to adopt a district each under their respective Corporate Social Responsibility (CSR) schemes and improve on the developmental indicators.

“On the suggestion of the Governor, it was agreed that banks will identify one district in each state to make it 100% digitally enabled within a time frame of one year in close coordination and collaboration with all stakeholders, including SLBCs, State Governments, Regional offices of RBI,” as per the release by the Reserve Bank. “To the extent feasible, such districts may be converged with the 'Transformation of Aspirational Districts' programme of the Government of India.”

Moreover, the governor also reiterated the need for banks to align their own development along with the lines of central bank’s Payments Vision Document 2019 to 2021 and Nandan Nilekani recommendations on deepening digital payments.

Separately, the governor Das also discussed issues such as less than desired policy action transmission, faster resolution of stressed assets under the revised restructuring circular, credit and deposit growth to priority sectors and recent issues around the financial wellbeing of NBFCs.

“In his opening remarks, the Governor acknowledged discernible improvements in the banking sector while underscoring that several challenges still remain to be addressed, particularly with regard to the stressed asset resolution and credit flows to needy sectors,” the press release said.