In a no-nonsense address, Finance Minister Nirmala Sitharaman on Monday cracked down on banks’ mis-selling practices, demanding they stick to lending and deposit mobilization instead of forcing insurance products on customers. ‘Mis-selling is a crime, plain and simple,’ she declared during a post-budget press briefing after conferring with RBI’s top board.
Sitharaman has been vocal on this issue for months, painting a vivid picture: a borrower seeking a housing loan with adequate security shouldn’t face pressure to bundle in unwanted policies. Her words carry weight, especially after RBI issued explicit orders making mis-selling non-negotiable.
Profitability, she insisted, should stem from core activities. Banks need to aggressively grow their low-cost CASA deposit base, a strategy she previously championed over direct capital injections from the state. This shift promises healthier balance sheets and reduced reliance on expensive funding.
Turning to international ripples from U.S. policy shifts, including escalated import duties now at 15% for 150 days affecting India and others, Sitharaman advised restraint. The Commerce Ministry is dissecting the fallout, with trade talks delegations set to navigate the terrain ahead. An interim U.S.-India pact meeting stands rescheduled.
India’s proactive trade diplomacy shines through finalized deals with key partners like the UAE, EU, UK, Australia, New Zealand, Qatar, and Oman. These alliances position the nation for robust economic growth via expanded global access.
Addressing gold price volatility, the minister linked recent upticks to global central bank hoarding of the yellow metal and silver. Cultural affinity keeps gold central to Indian savings, amplified during holidays. Yet, with oversight from authorities, the trend remains manageable for now.