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FM Sitharaman Asks PSBs to Lift Lending After Rate Cut

28 June 20251 min read
BANKING & FINANCEFM SitharamanAsks PSBs to LiftLending After RateCut28 June 2025safalsetu.com

Why in the news

The Finance Minister reviewed public sector banks’ performance and asked them to pass on the benefit of the repo rate cut to 5.5% made on June 6, 2025 under Governor Sanjay Malhotra.

Key facts

  • Lending: more credit for MSMEs, agriculture and infrastructure.
  • Schemes: wider rural and underserved coverage of the life and accident insurance schemes, Atal Pension Yojana, Kisan Credit Card and MUDRA.
  • Deposits: mobilise cheaper deposits to improve Net Interest Margins, using financial literacy drives, Business Correspondents and digital onboarding.
  • Asset quality: low NPAs in FY25 were appreciated; banks should sustain it through sound risk management.

Exam angle

  • Repo rate after cut: 5.5%. RBI Governor: Sanjay Malhotra.

Test yourself

1. Which repo rate did the RBI reach after its 50 bps cut on June 6, 2025?

The repo rate was cut by 50 bps to 5.5%.

2. What did the Finance Minister ask PSBs to do on credit growth in FY26?

The target was to maintain or exceed FY25 credit growth.

3. Which of these schemes was NOT in the list PSBs were told to expand?

The listed schemes were PMJJBY, PMSBY, APY, KCC and PM MUDRA.

This topic is part of Daily Current Affairs 28 June 2025 (16 topics).

All topics of the dayDay quizJune 2025

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