“Transformation occurred due to honesty, consistency in our efforts”: PM Modi lauds RBI

MUMBAI: Prime Minister Narendra Modi on Monday applauded the transformation that the Reserve Bank of India witnessed in the last decade and said that the changes occurred in the banking system due to the honesty and consistency in the efforts of the government.

While addressing the commemoration ceremony for 90 years of the RBI, the Prime Minister said that when the decisions are right, the policies bear the right fruit.

“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,” PM Modi said.

Recalling his visit to the event organised at the completion of 80 years of the RBI, the Prime Minister said that in 2014, the situation was so bad that the public sector banks were not able to provide enough boost to the country’s economic progress.

“In 2014, when I attended the programme for the completion of 80 years of the RBI, the situation was very different. The entire banking sector in India was struggling with problems and challenges. Everyone was doubtful regarding the stability and future of India’s banking system. The situation was so bad that the Public sector banks were not able to provide enough boosts to the country’s economic progress. We all started from there and today, India’s banking system is seen as a strong and sustainable banking system in the world,” he said.

“We left no stone unturned for the growth of the banking sector. The BJP government worked with the policy of recognition, resolution and recapitalization. To improve the situation of the public sector banks, the BJP government infused capital of around Rs. 3.5 lakh crore and also brought reforms related to governance,” the Prime Minister added.

Highlighting the growth of Unified Payments Interface (UPI) in the last 10 years, PM Modi said that India has entered a new era of the banking sector, economy and currency exchange.

“UPI has become a globally recognised platform. It records over 1200 crore transactions every month. In just 10 years, we have entered a new era of the banking sector, economy and currency exchange. We have to deliberate more on the possibilities of digital transactions. We also have to monitor the channels of a cashless economy and ensure that we foster a financially inclusive culture,” he said.

“The gross Non Performing Assets (NPA) of the banks, which was around 11.25 per cent in 2018, reached below 3 per cent by September 2023. The ‘twin-balance sheet’ problem is now a thing of the past. Banks now register a credit growth of 15 per cent. RBI has played a significant role in all these accomplishments,” the Prime Minister added.

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.

“While deciding the target for the 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 in fulfilling this youth aspiration,” he said.