Sitharaman Urges Banks to Lower Interest Rates

Union Finance Minister Nirmala Sitharaman has called for banks in India to make interest rates more affordable to support economic growth, particularly as industries look to expand. Her comments come amid rising concerns over high bank interest rates, which she acknowledged stress borrowers and hinder capacity building. Despite recent spikes in inflation driven by food prices, Sitharaman assured that the government is committed to managing the economy effectively and sees no cause for undue concern. She reiterated that the Reserve Bank of India (RBI) should focus on facilitating growth rather than solely targeting inflation metrics influenced by volatile food prices. Sitharaman emphasized the importance of banks prioritizing their lending functions and warned against practices that may inadvertently raise borrowing costs, such as the 'misselling' of insurance products. Overall, she projected confidence in India's resilient economic fundamentals despite the challenges posed by both domestic and global factors.