Finance Minister Urges Banks to Prioritize Local Languages in Customer Service

Finance Minister Nirmala Sitharaman has made a strong case for restoring the human element in banking, emphasizing that technology must complement-not replace-personal interaction. Speaking at an SBI event in Mumbai, she criticized public sector banks for posting staff members who lack proficiency in local languages, resulting in poor customer experiences.

The minister highlighted how this language barrier undermines the traditional strength of Indian banks - their ability to build personal relationships with customers. She cited a controversial incident in May when an SBI branch manager in Bengaluru refused to speak Kannada, insisting on Hindi only, sparking widespread backlash.

Sitharaman called for systemic changes in recruitment and HR policies to ensure local language proficiency becomes a key performance metric. She stressed that knowing a customer's language is not merely courteous but essential for business growth, enabling banks to better assess creditworthiness and build lasting relationships. Without these changes, she warned, customers may turn to informal lending sources instead of formal financial institutions.