Finance Minister Nirmala Sitharaman issued a sharp rebuke to banks Monday, calling for an immediate halt to mis-selling insurance and a return to fundamentals like loans and deposits. At a media interaction post her RBI Central Board meeting after the budget presentation, she branded such tactics criminal and unacceptable.
She’s flagged this repeatedly, citing examples like pressuring home loan applicants—despite strong collateral—into superfluous insurance. Relief came as RBI formalized bans on these practices, a move Sitharaman welcomed wholeheartedly.
‘Banks earn through lending and gathering deposits, not gimmicks,’ she asserted, zeroing in on CASA expansion as a priority. Earlier pleas for extra funds from banks were met with her guidance to tap CASA channels first, fostering self-reliance.
On U.S. tariff announcements—ramped up to 15% post-Supreme Court ruling—impacting India from February 24 for 150 days, she urged caution. Commerce officials are evaluating, with trade panels to steer negotiations. The India-U.S. interim deal timeline has slipped.
Highlighting India’s trade momentum, Sitharaman listed pacts with Australia, New Zealand, UAE, Qatar, Oman, EU, and UK as testaments to strategic outreach, aimed at supercharging economic vitality.
Gold’s rally stems from central banks’ global buying spree in gold and silver, she explained. Indians’ perennial love for gold, peaking festively, sustains demand. Government and RBI monitoring ensures no panic, as elevations stay within bounds.