MSME, digitisation discussed at 'PSB Manthan': DFS Secretary

Department of Financial Services (DFS) Secretary, Rajiv Kumar, on Sunday said that MSME and digitisation were important factors discussed at 'PSB Manthan'.

Talking to the media after the plenary session of the event at the State Bank Academy, Kumar said: "MSME and digitisation were extremely important factors discussed at the meeting today."

He also said that recapitalization does not come on its own and is preceded and followed by a whole set of reforms.

"The reforms include various things. It includes strengthening the board, as well as HR issues, they also include the kind of business each bank needs to do and the kind of core competencies they have."

"The reforms also include the need for the board to take a position to further give us a clear plan. We want to reach MSME very fast," concluded Kumar.

Earlier, Union Finance Minister Arun Jaitley had hailed recent reforms like digitisation and added that banks need to support MSMEs for a healthier economy.

"There is more funding that is coming into the banking system for it to be in good health. The banking system forms the core of the economy and is virtually indispensable. Banks must try and support the MSMEs primarily, as this is what counts for job creation and is need of finances. Compared to financial institutions everywhere else in the world, we have done well and will continue in that direction. We need to try and realise the growth rate that we are capable of achieving," Jaitley said.