FM urges banks to ‘professionalise’ decision-making boards

Finance Minister Nirmala Sitharaman on Friday directed banks to “professionalise” their decision making boards, making it clear that they cannot be run with a “crony background”.Addressing the 75th Annual General Meeting (AGM) of Indian Banks’ Association (IBA) in Mumbai, Sitharaman said: “Professionalise your decision-making boards, there is no way banks can any longer run with a crony background, our government has ensured that there are no instructions given or interference made in the functioning of the banks. We need to take professionalism at a faster pace. We are conscious of the need to let the banks be, and let them run by professionals, with a purely banking perspective in mind.”She also asked banks to be more tech-savvy and directed the IBA to ensure that their systems are in sync with each other or should be “talking to each other”.”Are you digital savvy? Are your staff digital savvy?” she sought to know from the banking community during the course of her speech.”Are you comfortable in being a digital institution? How much training goes into this? Do your systems talk to each other? It will be a big missed opportunity if these bridges between banks are not built. IBA should plan to make sure that all systems in all banks, whether private or public, should be talking to each other for the purpose of the customer….”