Finance Ministry’s Push for Cybersecurity and Financial Inclusion in Public Sector Banks (PSBs)
Context:
Recently, in response to the rise in cyber fraud cases, the Ministry of Finance urged public sector banks (PSBs) to improve their cybersecurity frameworks to align with industry best practices, ensuring customer protection and operational stability.
- It highlighted the need for PSBs to bolster cyber resilience, improve digital payment infrastructures, and prioritise lending to agriculture and MSMEs.
- The ministry also emphasised the importance of financial inclusion and sustainable credit growth.
Relevance:
GS-03 (Economy)
Key Highlights:
- Strengthening Financial Inclusion: PSBs have been informed to intensify efforts to expand access to financial services for underserved communities and enterprises, especially through digital innovations.
- Boosting Agricultural and MSME Lending: The Secretary urged banks to accelerate lending to key sectors such as agriculture and MSMEs to support economic growth and job creation.
- Improving CASA Deposits: Banks were encouraged to mobilise current account and savings account (CASA) deposits to support stable credit expansion.
- Enhanced Digital Customer Onboarding: Emphasis was placed on refining digital onboarding processes to streamline customer experience and expand reach.
- Prime Minister Narendra Modi also addressed the issue of cyber fraud, encouraging citizens to “stop, think, and act” when facing potential digital scams, emphasising the need for heightened public awareness across all sections of society.
About Public Sector Banks:
- These are those banks in which the government holds more than 50% of the total stock.
- All guidelines, especially those concerning the financials, are formulated by the government of India. It operates under the government to entrust depositors safety in terms of their money.
- The State Bank of India is India’s biggest public sector bank.
- Public sector banks constantly work in the public interest by introducing schemes for customers’ benefit. They also charge less for their services than private banks.
- Besides working in the public interest, nationalised banks in India also earn huge profits.
Related Posts
