Prime Minister Modi Celebrates RBI's 90-Year Legacy and Envisions a Progressive Banking Future
Prime Minister Modi Celebrates RBI's 90 Year Legacy and Envisions a Progressive Banking Future
In a landmark celebration marking the Reserve Bank of India's (RBI) 90th anniversary in Mumbai, Maharashtra, Prime Minister Modi highlighted RBI's significant contributions to India's economic fabric. The ceremony was graced by the release of a commemorative coin, symbolizing RBI's longstanding commitment to the nation's financial prosperity.
Modi lauded RBI for its unwavering professionalism and commitment through both pre and post-independence eras, crafting a global identity of trust and excellence. He envisioned the next decade as crucial for achieving the dreams of a developed India, emphasizing RBI's focus on fast-paced growth and stability.
Reflecting on the challenges faced by the banking sector in 2014, including NPA issues and financial instability, Modi noted the transformative journey to a robust and sustainable banking system, credited to clear policy direction and decisive actions including a strategy of recognition, resolution, and recapitalization.
The Prime Minister also highlighted the profound impact of RBI's work on common citizens, citing financial inclusion, the success of Jan Dhan accounts, and the enhancement of the rural economy through PM Kisan Credit Cards as key achievements. Modi further pointed to RBI's significant role in digital transaction promotion and the ongoing work on Central Bank Digital Currency, fostering a new banking, economy, and currency experience.
Looking ahead, Modi underscored the need for a tailored banking service approach, leveraging artificial intelligence and machine learning to improve 'ease of doing banking'. He praised RBI's rule-based discipline and proactive fiscal measures which have ensured moderate inflation levels, even amid the pandemic's challenges.
India's stance as a global growth engine, with a 15% share in global GDP growth, was celebrated, alongside efforts to enhance the Rupee's global acceptance. Modi called for increased economic self-reliance to mitigate global economic fluctuations and emphasized the need for RBI to spearhead the banking vision for a developed India, meeting the diverse credit needs across sectors.
The event, a testament to RBI's historic and future contributions to India's growth, was attended by prominent dignitaries including Maharashtra's Governor Ramesh Bains, Chief Minister Eknath Shinde, Deputy Chief Ministers Devendra Fadanvis and Ajit Pawar, Finance Minister Nirmala Sitharaman, Ministers of State for Finance Bhagwat Kishanrao Karad and Pankaj Chaudhary, and RBI Governor Shaktikanta Das.
In marking 90 years of the Reserve Bank of India's pivotal contributions, Prime Minister Modi's address at the RBI@90 ceremony underscored a vision of progression and resilience that the nation's banking and financial sectors have embraced. As the Reserve Bank of India steps into its 90th year, it stands not only as a testament to India's enduring financial stability but also as a beacon guiding the nation towards unprecedented economic milestones.
Under the theme of harnessing the banking sector's potential for a 'Developed and Self-reliant India,' the Prime Minister's reflections offered a profound narrative on the transformative journey of India's banking system. From addressing the systemic challenges of the past, including high Non-Performing Assets (NPAs) and the near stagnation of the banking sector, to heralding an era where Indian banks are recognized for their strength and sustainability on the global stage, the story of revival is both compelling and instructive.
This transformation, attributed to clear policy directives and an unwavering resolve, aligns with the strategic pillars of recognition, resolution, and recapitalization. The significant turnaround, evidenced by the decline in Gross NPAs and the robust profitability of banks, illustrates a comprehensive reform agenda that has recalibrated India's banking framework.
The narrative further delves into the RBI's instrumental role in fostering a banking system that is inclusive, technologically advanced, and sensitive to the evolving needs of a diverse populace. The Prime Minister's insights into financial inclusion, particularly through the Jan Dhan Yojana, the PM Kisan Credit Cards, and the emphasis on cooperative banking reforms, highlight a democratized approach to banking that empowers the most remote stakeholders.
Moreover, the advent of digital banking, underscored by the widespread adoption of the Unified Payments Interface (UPI) and initiatives towards a Central Bank Digital Currency, reflects a forward-looking stance that embraces innovation while ensuring security and trust.
As the narrative unfolds, it emphasizes the criticality of a visionary approach for the upcoming decade, marked by the digital economy's dynamics, the deepening of financial inclusion, and the imperative for 'ease of doing banking.' The significance of leveraging artificial intelligence, machine learning, and addressing the cybersecurity imperatives in a digitizing financial landscape are highlighted as pivotal to shaping a banking ecosystem that is resilient, responsive, and ready for the future.
In charting the course for the next ten years, the Prime Minister's address at the RBI@90 ceremony not only celebrated the Reserve Bank of India's historic journey but also set the stage for a banking and financial paradigm that is aligned with the aspirations of a 'Developed and Self-reliant India.' As India strides forward, the RBI's central role in this journey remains a cornerstone for achieving economic milestones, fostering innovation, and ensuring financial stability and inclusivity.