On Monday, Prime Minister Narendra Modi praised the significant evolution witnessed by the Reserve Bank of India over the past decade during a commemoration event marking its 90th anniversary. He attributed the positive changes in the banking system to the government’s steadfast dedication and integrity on Monday.
In his address, PM Modi emphasized that when decisions are made correctly, they yield favorable outcomes. He underscored the importance of honesty and consistency in governmental efforts, stating that these qualities have been instrumental in driving the transformation observed in the RBI.
PM Modi emphasized the clarity of intentions, the correctness of policies, and the subsequent positive results as key factors contributing to the RBI’s progress.
PM lauds the progress in Banking sector
The RBI has played a key role in transforming India’s banking sector. pic.twitter.com/vx8Fkj4lXZ
— Narendra Modi (@narendramodi) April 1, 2024
During a recent event commemorating the completion of 90 years for the Reserve Bank of India (RBI), Prime Minister Narendra Modi reflected on the significant progress made in the banking sector over the past decade. He recalled attending a similar event marking the RBI’s 80th anniversary in 2014, where he highlighted the challenges faced by India’s banking system at that time.
PM Modi noted that in 2014, the banking sector was grappling with various issues, causing uncertainty about its stability and future. Public sector banks particularly struggled to contribute effectively to the country’s economic growth. However, he emphasized the government’s commitment to addressing these challenges, implementing policies focused on recognition, resolution, and recapitalization. The infusion of approximately Rs. 3.5 lakh crore into public sector banks and governance reforms were instrumental in improving the sector’s situation.
PM on UPI and reduction in NPAs
The Prime Minister also lauded the remarkable growth of the Unified Payments Interface (UPI) over the past decade, stating that India has entered a new era in banking, economy, and currency exchange. He highlighted UPI’s global recognition and its role in facilitating over 1200 crore transactions monthly. PM Modi stressed the importance of further exploring digital transactions and promoting financial inclusivity.
PM Modi highlighted significant achievements, including the reduction of gross Non-Performing Assets (NPA) from 11.25% in 2018 to below 3% by September 2023 and the resolution of the ‘twin-balance sheet’ problem. He credited the RBI for its crucial role in these accomplishments and outlined aspirations for the next decade, emphasizing the importance of aligning goals with the aspirations of India’s youth.
Looking ahead, PM Modi underscored the RBI’s vital role in fulfilling the aspirations of India’s young population. During the 90th anniversary celebration of the Reserve Bank of India (RBI), Prime Minister Narendra Modi expressed the goal for India to aim towards achieving a self-reliant financial economy over the next decade. He emphasized the need for India to become resilient to global events and to confidently advance towards progress and development.
Developments and future plan
“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,” stated the Prime Minister, highlighting the transformative journey of India’s economy.
“India is among the youngest nations in the world… Our policies have opened up new sectors in the economy like green energy, digital technology, Defense which is getting into the export mode, MSMEs, space and tourism industries,” he emphasized, urging the RBI to focus on addressing the aspirations of the youth in these emerging sectors.
“Pointing out that globally there is a challenge for nations to strike a balance between inflation control and growth,” the PM called upon the RBI to study and develop a model for this, which can be a trendsetter for the world, especially the Global South, while ensuring that the Indian Rupee is accessible and acceptable worldwide.
“Aiming for the target for the next 10 years, PM Modi said that the aspirations of the youth of India need to be focused and the RBI has an important role in fulfilling this youth aspiration,” he reiterated, emphasizing the importance of aligning goals with the aspirations of India’s young population.
Finally, PM Modi underscored, “The transformation occurred because there was honesty and consistency in our efforts. This change has come because our policies, intentions, and decisions were clear. When the intentions are clear, then the policies are right. When policies are right, then the decisions are right. And when the decisions are right, the results are also right.”
Glancing at History of RBI on it’s 90th commemoration day
Established in 1935, the Reserve Bank of India (RBI) operates as the country’s central bank, in accordance with the recommendations of the Hilton Young Commission and governed by the Reserve Bank of India Act, 1934.
The RBI Act, 1934 (II of 1934), lays down the framework for the functioning of this central bank, which commenced operations on April 1, 1935, under the leadership of Sir Osborne Smith as its inaugural Governor. Its responsibilities encompass various facets, including currency issuance, provision of banking services to both banks and the government, and the promotion of rural cooperatives and agricultural credit.
In 1937, the Central Office of the Reserve Bank was relocated from Kolkata to Mumbai.
Over time, the role of the RBI has expanded significantly, encompassing monetary management, regulation and supervision of the financial system, management of foreign exchange, currency issuance, regulation and supervision of payment and settlement systems, as well as developmental functions.
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