After Taking Oath, There Will Be Lot Of Work, Says Modi
Technologies like artificial intelligence and blockchain in the growing digital banking system needs to be a key focus, Modi says.
Prime Minister Narendra Modi exuded confidence on Monday about his return to office just weeks ahead of the Lok Sabha election.
Speaking at an event to mark the 90th anniversary of the Reserve Bank of India in Mumbai, Modi said that a day after taking oath, a lot of work would be there.
Applauding the RBI's policies, the prime minister said the central bank is known for its professionalism and commitment across the world. "The coming decade is crucial for sustained growth in India," he said. "Its GDP is dependent on coordination of monetary and fiscal policies."
Modi highlighted challenges related to non-performing assets back in 2014 when he came into power the first time, which he said have been resolved through coordination of monetary and fiscal policy during the last decade.
Modi also highlighted the strategy of recognition, resolution and recapitalisation adopted by the Union government in the last decade to minimise the problem of bad debt in the banking system. This, he said, resulted in the gross NPAs in the banking system coming below 3% in September 2023 from 11.25% in 2018.
In the last decade, financial inclusion and last-mile connectivity of government policies was a prime focus for the ruling dispensation. This led to a push in the rural economy, with the help from co-operative banks in the country, according to Modi.
As the Unified Payments Interface is a globally recognised platform, Modi said the next phase of economic development would come through new-use cases of digital transactions, while keeping an eye on new developments in the cashless economy.
With the central bank digital currency, India is moving towards a new banking system, new economy and a new-currency experience, he said. Modi stressed on the need for the RBI to come up with out-of-the-box policies to ensure credit availability for the youth associated with the new sectors.
He also underscored the importance of innovation in the 21st century, for which research teams must be constituted. He said the regulators must be prepared for the needs of new and traditional sectors like space and tourism.
Technologies like artificial intelligence and blockchain in the growing digital banking system needs to be a key focus. The structure of the banking system in light of fintech innovations needs to be looked at, and new financing, operating and business models will be needed, Modi said.
"Meeting the credit needs of global champions to street vendors, of the cutting-edge sectors to traditional ones is critical for Viksit Bharat and the RBI is the appropriate body for the holistic appreciation of the banking vision of Viksit Bharat," the prime minister said.
