Finance Minister Urges PSBs to Recruit Staff Fluent in Local Languages

Finance Minister Nirmala Sitharaman has urged Public Sector Banks (PSBs) to modify their human resource policies to ensure that employees, particularly those working at branch level, can communicate effectively with local customers in their regional languages, PTI reported.

Speaking at a recent meeting with heads of PSBs, the Minister said recruitment should not be done merely to fill vacancies but to ensure that bank staff understand customers’ needs and speak the local language of the area in which they are posted. She emphasised that this would help improve customer service and strengthen the connection between banks and the communities they serve.

Sitharaman noted that while top management may not always be fluent in regional languages, it is essential that front-line staff—the ones directly interacting with the public—are able to do so. She added that banks should review their appraisal systems and include language proficiency and local understanding as part of performance evaluations.

The Finance Minister also encouraged PSBs to focus on inclusive and sensitive recruitment practices that reflect India’s linguistic and cultural diversity. She highlighted that effective communication in the local language can make financial services more accessible and build greater trust among customers, especially in rural and semi-urban areas.

The Ministry of Finance has asked the Department of Financial Services to work closely with banks to implement these recommendations. The move is expected to improve customer experience, enhance operational efficiency, and support the government’s goal of ensuring last-mile financial inclusion across the country.