Prime Minister Narendra Modi on Monday lauded the Reserve Bank of India (RBI) for its pivotal role in transforming the banking sector and the economy at the bank’s 90th Anniversary in Mumbai. PM also launched a commemorative coin to mark 90 years of RBI.
“In 2014, when I attended the program for the completion of 80 years of the RBI, the situation was very different. The entire banking sector of India was struggling with problems and challenges. Everyone was doubtful regarding the stability and future of India’s banking system,” says PM Modi in his speech at the event.
He added that the situation was so bad that the Public Sector banks were not able to provide enough boost to the country’s economic progress and compared to today, India’s banking system is seen as a strong and sustainable banking system in the world.
PM Modi also credited the RBI for its crucial role in the Indian economy, including maintaining a balance between growth and inflation. The Reserve Bank of India(RBI) commenced its operations on the 1st of April in 1935 and enters its 90th year in 20124.
The PM highlights the importance of RBI as next decade is extremely important for the resolutions of a Viksit Bharat. He said that the Indian economy is making new records when several economies are struggling to come out of the Covid pandemic impact . However he highlighted the fact that a lot more needs to be done and that what happened in the past decade was just a trailer.
See what RBI Governor Shaktikanta Das has to say
The RBI Governor Shaktikanta Das stated that the Central Bank has shifted its focus towards facilitating the market economy. Das says, “From being a central bank primarily concerned with allocation of scarce resources during the planning period, the Reserve Bank has transitioned into being an enabler for the market economy”.
Modi says there is a need to study “newer banking structure” with evolving changes in the financial industry’s landscape. He said that the banking industry needs to move forward to ensure that it can fund the credit needs of the projects necessary for the country’s future growth.
Further he says, there are some challenges which the industry is facing right now , including Artificial Intelligence and blockchain, which are changing the face of banking, cyber security amid the increasing reliance on digital banking and innovations like fintechs, he said. The credit assessment have to be done by the RBI, keeping in mind the growth prospects and potential of the country.
“While deciding the target for next 10 years, we have to keep one more thing in mind. That is the aspirations of the youth of India. India is one of the youngest countries in the world today. RBI has an important role fulfiliing this youth aspiration”, said the PM.
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