Prime Minister Narendra Modi, on Monday, said the Reserve Bank of India has to accord "top-most priority" to growth and at the same time focus on trust and stability. He was speaking at an event to mark 90 years of RBI in Mumbai.
Modi noted that RBI has created an identity around the world based on its professionalism and commitment. He said the policies drafted today will shape the next decade of RBI as the central bank enters its centenary year.
“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.
Emphasising the importance of coordination of monetary and fiscal policies in the GDP and the economy of the country, Modi 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 then. He said starting from there, today India has reached a point where the banking system in the country is being seen as a strong and sustainable banking system in the world.
Modi credited clarity of policy, intentions, and decisions for this transformation. “Where intentions are right, results too are correct.” Speaking on the comprehensive nature of reforms, the PM stated that the government worked on the strategy of recognition, resolution and recapitalisation.
He said 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.
Modi emphasised 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. The PM also stressed the need for deepening financial inclusion and empowerment processes.
He underlined the need to improve the "ease of doing banking" and provide tailor-made services as per the needs of the citizens.
Noting the achievement of RBI in infusing rule-based discipline and fiscally prudent policies in the banking sector, the PM asked for advance estimation of the needs of various sectors to take proactive steps while assuring the banks of the government’s support.
Modi also stressed increasing the economic self-reliance of India in the next 10 years so that the impact of global issues is mitigated. “Today, India is becoming the engine of global growth with 15 per cent share in global GDP growth”, he said.
He underlined the importance of a strong banking industry for providing required funding to the projects of the nation. He noted the changes brought about by technologies like AI and BlockChain and noted the importance of cyber security in the growing digital banking system.
Modi also released a commemorative coin to mark 90 years of RBI on the occasion.
