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Nirmala Sitharaman urges banks to boost deposits as credit gap widens
Finance Minister Nirmala Sitharaman emphasized the need for banks to focus on increasing smaller, consistent deposits, which are crucial for the banking system, as concerns grow over the widening gap between deposits and credit. She highlighted that while deposits grew by 10.6% as of late July, credit expanded by 13.7%, creating potential liquidity issues. RBI Governor Shaktikanta Das supported this view and noted that banks should innovate deposit schemes to attract more funds.