Chennai

President Droupadi Murmu on Tuesday said that despite progress in banking sector, several challenges were still faced in terms of digital literacy and financial awareness among the public.

Empowerment of farmers and rural economy should be a priority for the banking sector, Murmu said at the 120th Foundation Day celebrations of Tamil Nadu-based City Union Bank here.

Banks and financial technology companies offer user-friendly mobile applications and insurance products tailored for underserved communities.

Payment banks, digital wallets and banking correspondents have taken financial services to the doorsteps of remote villages, she said.

Despite progress in this area, Murmu said, several challenges in terms of digital literacy, internet access and financial awareness, remain.

"With combined efforts of all stakeholders, people can be better integrated with banking services through technology, digital and financial literacy," she said.

Further, banks can play a key role in transforming MSMEs into engines of growth.

"By extending timely and affordable credit, offering financial literacy and supporting agri-tech initiatives, banks can help in making agriculture sustainable and profitable. Banks can play an important role in transforming MSMEs into the engines of growth" she said.

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Tamil Nadu Governor R N Ravi, Union Finance and Corporate Affairs Minister Nirmala Sitharaman, TN Minister for Social Welfare and Women Empowerment Geetha Jeevan, City Union Bank Chairman G Mahalingam, the Bank's MD and CEO N Kamakodi were present on the occasion.