Amit Shah Urges Banks to Go Global and Back MSMEs

Samina — Fri, 26 Sep 2025 04:22:45 +0000

Union Home Minister Amit Shah urged Indian banks to aim beyond growth and position themselves among the world’s top 10 banks. Speaking at the Financial Express Best Banks Awards in Mumbai, he emphasized the importance of supporting micro, small, and medium enterprises (MSMEs), calling them vital to India’s economic development. Shah highlighted that successful businesses like Ambani, Adani, and Torrent began as small ventures and stressed that the government provides guarantees to MSMEs seeking funding.

Shah also spoke about reforms under Prime Minister Narendra Modi, noting measures like the removal of 40,000 compliances, crackdown on corruption, and the upcoming Jan Vishwas Bill 2, aimed at eliminating criminal activities in the economy. He credited financial inclusion, structural reforms, digitalization, and welfare schemes for helping India maintain a 7-8% growth rate, despite global economic slowdowns.

Highlighting future growth sectors, Shah pointed to electric vehicles, green energy, fintech, space, and defense manufacturing. He praised tax reforms, including the Next-Gen GST and personal income tax adjustments, which have boosted citizens’ trust in the system.

Shah also noted the sharp drop in Non-Performing Assets (NPAs) from 19% in 2014 to 2.5%, achieved through the “four Rs” approach: Recognise, Recover, Recapitalise, and Reform. He emphasized transparency, accountability, and digital banking expansion, which now reaches even rural areas through UPI and mobile banking.

On global issues, Shah stressed India’s economic and democratic resilience, asserting that coalition governance does not slow reforms. Concluding, he urged banks to combine innovation with support for MSMEs to strengthen India’s economic position on the world stage.

The post Amit Shah Urges Banks to Go Global and Back MSMEs appeared first on India Podcast.

RBI Urges Banks to Reduce Consumer Fees

Anil Vanna — Sat, 20 Sep 2025 09:23:23 +0000

The Reserve Bank of India (RBI) has asked banks to lower fees on several consumer products, according to reports. The move could reduce billions of rupees in revenue that banks currently earn from service charges.Bloomberg reported, citing people familiar with the matter, that RBI officials recently spoke to lenders about reducing charges on debit cards, penalties for not maintaining minimum balances, and late-payment fees. The central bank has not issued any official statement.

The directive comes as banks expand retail lending, including personal loans, car financing, and small-business credit. While retail growth has boosted bank profits, it has also attracted regulatory attention.Sources indicated that RBI is particularly concerned about charges that impact low-income customers. Currently, processing fees on retail and small-business loans range from 0.5 percent to 2.5 percent. Some lenders cap home loan fees at ₹25,000, or about USD 285.

Fee income has already been recovering. In the June quarter, it rose 12 percent year-on-year to ₹510.6 billion, compared with 6 percent growth in the previous quarter. The Indian Banks Association is now reviewing over 100 retail products as regulators examine large variations in charges across institutions.

The post RBI Urges Banks to Reduce Consumer Fees appeared first on India Podcast.

Indian banks Archives - India Podcast

Amit Shah Urges Banks to Go Global and Back MSMEs

RBI Urges Banks to Reduce Consumer Fees