FM calls for mass campaign to expand domestic savings base

Finance minister Pranab Mukherjee today called for a mass campaign aimed at bringing domestic savings of the unorganised and vulnerable sections of the society into national banking system.

He said domestic savings have always played a major role in the Indian economy and therefore there is a need to bring the savings of the people of the unorganised sectors into banking mainstream.

Mukherjee was addressing a gathering at UTI headquarters in Mumbai after the launch of smart card of short distance vehicle operators. This card was launched jointly by UTI, BPCL and Corporation Bank. 

The finance minister said there is a need to create awareness among the people to bring their savings into the national banking system in order to get better returns and for social security in their old days.

Domestic savings in the country currently average around 34 per cent of its gross domestic product (GDP), of which domestic household savings contribute about 23 per cent, the finance minister said.

While appreciating the efforts made by various financial institutions and public sector banks in bringing more and more people in the banking network and thereby helping to achieve financial inclusion, he said the lack of sufficient bank branches has necessitated the use of new technologies to provide banking facilities to the vulnerable and poor sections of the society.