Finance Minister Nirmala Sitharaman called on public sector banks to enhance employee appraisals based on local language proficiency, emphasizing its importance for customer relations and business growth.

During a recent event, Finance Minister Nirmala Sitharaman emphasized the necessity for public sector banks (PSBs) to adapt their HR policies to prioritize local language proficiency among employees. She argued that effective communication in regional languages enhances customer service and strengthens business relationships. Sitharaman pointed out that many bank officials have faced backlash for not speaking local languages, which has led to a disconnect with customers. She advocated for performance appraisals to reflect employees' abilities to communicate in local languages, suggesting that this could improve customer satisfaction and loyalty. Additionally, she noted that the decline in personal connections has resulted in increased reliance on credit information companies, which can delay loan approvals. Sitharaman's remarks highlight the importance of maintaining a human touch in banking, especially in a diverse country like India.