NE BUSINESS BUREAU
MUMBAI, APRIL 1
Over the next 10 years, India must strive to become a ‘financially Atmanirbhar’ economy that is shielded from all global events and continues to march ahead confidently for progress and development, Prime Minister Narendra Modi said on Monday.
The @RBI plays pivotal role in advancing our nation's growth trajectory. Speaking at its 90th year celebrations in Mumbai.https://t.co/95JoqaDy0U
— Narendra Modi (@narendramodi) April 1, 2024
Speaking at the 90th anniversary celebrations of the the Reserve Bank of India, the PM said that the country’s economy has risen in the last few years from the inherited mess of 2014 when the BJP government took office, and is now poised for take-off.
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Modi also released a commemorative coin to mark 90 years of RBI. The Reserve Bank of India (RBI) commenced its operations on the 1st of April in 1935 and enters its 90th year today.
Addressing the occasion, the Prime Minister said that the Reserve Bank of India has reached a historic landmark today completing 90 years of existence. He underlined that the RBI has witnessed both the pre and post-independence eras and it has created an identity around the world based on its professionalism and commitment. The Prime Minister congratulated all staff on the completion of 90 years of the RBI. Deeming the present RBI staff as fortunate, the Prime Minister said that the policies drafted today will shape the next decade of RBI and noted that the next 10 years will take RBI to its centenary year.
RBI enters its 90th year today. It has emerged as an institution which stands for stability, trust and growth. Many congratulations to the entire Team RBI, past and present for making this possible. Let us continue the journey with even greater dedication.
— Shaktikanta Das (@DasShaktikanta) April 1, 2024
“The next decade is extremely important for the resolutions of a Viksit Bharat”, PM Modi said, highlighting the RBI’s priority towards fast-paced growth and focus on trust and stability. The Prime Minister also conveyed his best wishes for the fulfilment of its goals and resolutions.
Emphasizing the importance of coordination of monetary and fiscal policies in the GDP and the economy of the country, the Prime Minister recalled the 80-year celebration of RBI in 2014 and remembered the challenges and problems like NPA and stability faced by the banking system of the country at that time. He said that starting from there, today we have reached a point where the Indian banking system is being seen as a strong and sustainable banking system of the world as the near moribund banking system of that time is now in profit and showing record credit.
The Prime Minister credited clarity of policy, intentions and decisions for this transformation. “Where intentions are right, results too are correct”, said the Prime Minister.
Speaking on the comprehensive nature of reforms, the Prime Minister stated that the government worked on the strategy of recognition, resolution and recapitalization. A capital infusion of Rs 3.5 lakh crore was undertaken for the helping public sector banks along with many governance-related reforms. Just the Insolvency and Bankruptcy Code has resolved loans amounting to Rs 3.25 lakh rupees, the Prime Minister pointed out. He also informed the country that more than 27,000 applications involving underlying defaults of more than Rs 9 lakh crore were resolved even before admission under IBC. Gross NPAs of banks that stood at 11.25 percent in 2018 came down to below 3 percent by September 2023. He said that the problem of twin balance sheets is a problem of the past. PM Modi complimented RBI for their contribution to this transformation.
Prime Minister Modi pointed out that even though the discussions related to the RBI are often limited to financial definitions and complex terminologies, the work carried out at RBI directly makes an impact on the lives of common citizens. In the last 10 years, the Prime Minister said that the government has highlighted the connect between the central banks, banking systems and beneficiaries at the last queue and gave the example of financial inclusion of the poor. He mentioned that 55 percent of the 52 crore Jan Dhan accounts in the country belong to women. He also mentioned the impact of financial inclusion in the agriculture and fisheries sector where more than 7 crore farmers, fishermen and cattle owners have access to PM Kisan Credit Cards providing a significant push to the rural economy. Referring to the boost for the cooperative sector in the past 10 years, the Prime Minister threw light on the importance of regulations of the Reserve Bank of India regarding cooperative banks. He also mentioned more than 1200 crore monthly transactions via UPI making it a globally recognized platform. The Prime Minister also touched upon the work being done on Central Bank Digital Currency and said that the transformations of the past 10 years have enabled the creation of a new banking system, economy and currency experience.
The Prime Minister emphasized the importance of clarity for the targets of the next 10 years. He pointed out the importance of keeping an eye on the changes brought about by the cashless economy while promoting digital transactions. He also stressed the need for deepening financial inclusion and empowerment processes.
Stressing the diverse banking needs of a large country like India, the Prime Minister underlined the need to improve ‘ease of doing banking’ and provide tailor-made services as per the needs of the citizens. He underscored the role of artificial intelligence and machine learning.
Governor of Maharashtra Ramesh Bains, Chief Minister of Maharashtra Eknath Shinde, Deputy Chief Ministers Devendra Fadanvis and Ajit Pawar, Union Finance Minister irmala Sitharaman, Ministers of State for Finance Bhagwat Kishanrao Karad and Pankaj Chaudhary, and RBI Governor Shaktikanta Das were present on the occasion.
