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ANIFinance Minister Nirmala Sitharaman Union Finance Minister Nirmala Sitharaman has urged public sector banks (PSBs) to promote local language use and revise HR policies to give better appraisals to employees proficient in regional languages. She also advised banks not to overburden borrowers with excessive documentation. “Language is an important way to communicate with your customers. Even if they know Hindi or English, it adds a nice touch when you speak their language,” Sitharaman said at an SBI event on Thursday. “We Indians go abroad and say a few words in French or Spanish to please people—but in our own country, because of HR policies, staff are often posted without knowing the local language. That human touch gets lost.” Emphasising the need for regional language proficiency in promotions, she added, “Recruit to ensure that every staff member posted at a branch understands the customer and speaks the local language. At least if the top management doesn’t, the branch-level officer should. I would strongly push for performance appraisals based on one’s efficiency in the local language.” Her comments come amid several recent controversies where bank officials faced backlash for refusing to speak local languages. Such tensions have been particularly visible in Maharashtra and southern states like Karnataka. A recent incident in Bengaluru, where a bank manager refused to speak Kannada with a customer, led to outrage, condemnation from Chief Minister Siddaramaiah, and the official’s transfer. Sitharaman also expressed concern that banks’ declining personal connect with customers has increased dependence on credit information companies, which often delay data updates—leading to loan denials.Live Events She reminded banks that maintaining strong local connections is vital not just for customer service but also for business growth, recalling how older private banks thrived through community relationships before nationalization. “You cannot say you will do everything digitally and reach customers only online. Person-to-person contact was the strength of Indian banks, even before technology, and it helped you make big strides,” she said. “A key part of this human touch is language. It’s basic etiquette for customers to be able to converse in their own tongue at branches.” The Finance Minister noted that the loss of personal touch has created situations where bank branches no longer know their customers, unlike earlier times when officials could vouch for a borrower’s creditworthiness. She also shared instances of people turning to moneylenders due to rigid banking processes. “You can’t be putting the onus on the borrower to go on proving and providing documents till death comes. If these small things are corrected, you will be the most appreciated institutions in the country,” she told banks.With PTI InputsAdd as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onsbipublic sector banksnirmala sitharamanpsbslocal languages (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onsbipublic sector banksnirmala sitharamanpsbslocal languages(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless
