India’s Banking Sector Was Struggling In 2014, Our Policies Remedied It: PM Modi At RBI 90th Anniversary

Speaking at the 90th anniversary of RBI, PM Modi asserted that the situation at the time was so bad that Public Sector banks were able to support the country’s economic growth.

PM Modi speaks at the 90th anniversary of RBI

RBI 90 Years: Prime Minister Narendra Modi Monday asserted that the entire banking sector in India was marred by problems and challenges when his government came to power at the Centre in 2014, but now the country’s banking system is one of the strongest and most sustainable in the world, owing to the policies implemented by the BJP-led NDA dispensation.

“In 2014, when I attended the event 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 about the stability and future of India’s banking system,” PM Modi said in his address at the 90th anniversary of India’s central bank.

‘Our policies have built a robust banking system’

Modi asserted that the situation at the time was so bad that Public Sector banks were able to support the country’s economic growth.

“But today, India’s banking system is seen as a strong and sustainable banking system in the world,” he added.

The Prime Minister said the country’s banking sector has become profitable and credit growth has been increasing because of efforts taken by his government and the RBI in the last decade.

“This change has come because our policies, intentions and decisions were clear. Our efforts had stability and honesty. 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,” Modi stated.

India must become self-reliant in next decade

PM Modi also stressed the need for the country to become economically self-reliant over the next decade so its not affected by global factors.

He asserted that a lot of work will be generated for everyone once the BJP-led NDA assumes office for the third term in June this year.

“We have to increase India’s economic self-reliance,” he said.

The PM further said the gross NPAs of public sector banks, which was around 11.25 per cent in 2018, dropped to less than 3 per cent by September 2023.

The “twin-balance sheet” problem is now a thing of the past, Modi said, adding that banks are now registering a credit growth of 15 per cent.

The RBI has played a significant role in all these accomplishments, he added.

On Jan Dhan accounts, UPI

Speaking about the achievements of his government in providing economic benefits to the poor, Modi said that at present there are 52 crore Jan Dhan bank accounts over half of which, around 55 percent, belong to women.

“More than 7 crore farmers, fishermen and animal herders have Kisan credit cards. Our rural economy has received a huge push. The cooperative sector has also received a huge boost in the last 10 years,” said the PM.

PM Modi also hailed the global recognition gained by India’s UPI system and stated that over 1,200 crore transactions are done via the digital payments platform each month.

(With inputs from agencies)



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