NE BUSINESS BUREAU
CHENNAI, SEPT 2
President Droupadi Murmu emphasized the ongoing challenges in the banking sector, particularly highlighting the need for digital literacy and greater financial awareness among the public.
LIVE: President Droupadi Murmu addresses the 120th foundation day celebrations of City Union Bank at Chennai, Tamil Nadu https://t.co/UjqZM5QdM4
— President of India (@rashtrapatibhvn) September 2, 2025
President Droupadi Murmu graced the 120th foundation day celebrations of City Union Bank at Chennai. Highlighting the need to enhance digital and financial literacy in a developing country like India with a large population, she appreciated the City Union Bank for remarkable… pic.twitter.com/rPjVCLYtam
— President of India (@rashtrapatibhvn) September 2, 2025
Speaking at the 120th Foundation Day celebrations of City Union Bank (CUB) in Chennai, Tamil Nadu on Tuesday, the President said, “The Indian economy is among the fastest-growing large economies in the world, and the banking industry plays a pivotal role in its growth story. In a dynamic economic landscape, the aspirations of people have expanded in a major way. The role of banks has expanded beyond financial transactions. Banks are not just custodians of wealth. Today they offer variety of financial services. They are also instrumental for inclusive and sustainable development.”
- The empowerment of farmers and the rural economy should be a priority of our banking sector: President
- Next generation GST reforms will set economy open and transparent: FM Sitharaman
The President further said, “One of the critical pillars of the country’s development is financial inclusion, which means ensuring that every citizen has access to affordable financial services.”
She expressed confidence that banks like City Union Bank are helping meet the national target of saturation in the area of financial inclusion through banking. She stated that in a developing country like India, a large population still lives in rural and semi-urban areas with limited access to formal banking. She was happy to note that City Union Bank has made remarkable progress in the field of financial inclusion.
The President noted that banks and fintech companies are offering user-friendly mobile apps, micro-loans, and insurance products tailored for underserved communities. Payment banks, digital wallets, and banking correspondents have taken financial services to the doorsteps of remote villages. She stated that despite progress in this area, several challenges are still faced in terms of digital literacy, internet access, and financial awareness. With combined efforts of all stakeholders, people can be better integrated with banking services through technology, and digital and financial literacy.
The President said that the empowerment of farmers and the rural economy should be a priority of our banking sector. By extending timely and affordable credit, offering financial literacy, and supporting agri-tech initiatives, banks can help in making agriculture sustainable and profitable. Banks can play an important role in transforming MSMEs into the engines of growth. Our banks should also take measures for helping the underprivileged and marginalized sections. Special efforts should be made for better integrating daily wage earners and migrant labourers with banking services.
The event was attended by notable figures, including Tamil Nadu Governor R N Ravi, TN Minister for Social Welfare and Women Empowerment Geetha Jeevan, City Union Bank Chairman G Mahalingam, and the Bank’s MD and CEO N Kamakodi.
The President said that as our digital and knowledge-driven economy keeps expanding, the role of banks in digital transformation and entrepreneurship becomes even more crucial. From start-ups to smart cities, there is a whole range of areas in which banks can help. Banks can become active partners in the making of a developed India.
Next generation GST reforms will set economy open and transparent: FM Sitharaman
The next generation GST reforms would ‘absolutely’ set an economy open and transparent with further reduction in compliance burden and benefiting small businesses, Union Finance Minister Nirmala Sitharaman said on Tuesday.
She was speaking at the 120th Foundation Day celebrations of Tamil Nadu-based City Union Bank.
Sitharaman said Prime Minister Narendra Modi recently announced the creation of a Task Force for next generation reforms with a clearer mandate to simplify regulations, lower compliance costs and also build a more enabling ecosystems for startups, Micro, Small and Medium enterprises and entrepreneurs.
“Complementing this, the planned roll out of the next generation GST reforms with the planned Council meeting tomorrow and day after, will set an economy absolutely open and transparent in the coming months and with further reduction in compliance burden, making it easier for small businesses to thrive” Sitharaman said.
Sitharaman further said that if India is advancing towards its vision of Viksit Bharat 2047 then the banks are called upon to not only expand credit but also provide momentum for infrastructure development, ensure timely and need-based funding for MSMEs, bringing the unbanked into the fold of formal banking and meeting diverse requirements where the support of banking channels was vital.
“The guiding principles for this transformation must be trust, technology and transparency.” she noted.
Over past 11 years, 56 crore Jan Dhan accounts have been opened with total deposits of Rs 2.68 lakh crore, and majority of the account holders were women, she said.
