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Govt reforms have transformed banking sector: Modi

He said banks must now support wealth, job creators

narendra-modi-pic-ap-nw Prime Minister Narendra Modi | AP

Prime Minister Narendra Modi said the government's efforts to address the issues of the banking sector has led to its turnaround, so it should now support wealth and job creators to push the economy towards growth.

Modi was addressing the concluding session of the conference on 'Creating Synergies for Seamless Credit Flow and Economic Growth'. “The reforms initiated by the government in the banking sector in the last six-seven years, supported the banking sector in every way, due to which the sector is in a very strong position today. The financial health of banks is now in a much improved condition,” Modi said.

The Prime Minister said his government had found to address the problems and challenges that existed before 2014. “We addressed the problem of NPAs, recapitalised banks and increased their strength. We brought reforms like IBC, reformed many laws and empowered debt recovery tribunal. A dedicated Stressed Asset Management Vertical was also formed in the country during the COVID-19 period,” Modi said.

As the banks are on strong footing, they should play a major role in the economy's growth, he said. “Indian banks are strong enough to play a major role in imparting fresh energy to the country's economy, for giving a big push and making India self-reliant. I consider this phase as a major milestone in the banking sector of India”. Modi said this phase is also a starting point and asked the banking sector to support wealth creators and job creators. “It is the need of the hour that now the banks of India work proactively to bolster the wealth sheet of the country along with their balance sheets,” he said.

The prime minister emphasised the need to pro-actively serve customers and asked the banks to provide customised solutions to customers, companies and MSMEs after analysing their needs. Banks will have to adopt the model of partnership, he said. He also praised the banking sector for their enthusiasm in implementing the Jan Dhan Scheme.

Modi said that due to major changes that have taken place in the country and the schemes that have been implemented, a huge data pool has been created, adding that the banking sector must take advantage of this. He listed the opportunities presented by the flagship schemes like PM Awas Yojana, Swamiva, and Svanidhi and asked the banks to participate in these schemes. Speaking on the overall impact of financial inclusion, Modi said that when the country is working so hard on financial inclusion, it is very important to unlock the productive potential of citizens. He cited an example of a recent research that said that crime rate reduced in states where more Jan Dhan accounts were opened.

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