FM Sitharaman: Local Language Skills Must Be Part Of HR, Appraisal To Strengthen Banking

Finance Minister Nirmala Sitharaman, speaking at the SBI Banking & Economic Conclave, stressed the importance of promoting local languages in banking to strengthen customer connect. She urged public sector banks to ensure branch staff are familiar with the local language, noting that declining human interaction has increased dependency on credit information companies, often causing loan delays. Sitharaman said technology should complement—not replace—personal engagement, emphasising that person-to-person contact has long been a strength of Indian banks. Calling language skills “basic etiquette,” she suggested HR policies and performance appraisals should reward linguistic and cultural familiarity to improve customer service.