Prime Minister Modi commends the RBI for its significant role in India’s transformation over the past decade, likening it to a trailer of achievements 2024.”
Prime Minister Modi praised the RBI for its commendable contribution to the transformation of India’s banking system and economy over the past decade, during his speech at the central bank’s 90th anniversary event in Mumbai on Monday.
Reflecting on the contrast from his attendance at the RBI’s 80th anniversary in 2014, Modi highlighted the significant challenges faced by India’s banking sector at that time, including the twin balance sheet crisis and banking turmoil. He recalled widespread doubts regarding the stability and future of the system, emphasizing the inability of public sector banks to effectively stimulate the Indian economy.
“The banking system which was on the verge of going bust, is today seeing profits and is setting records when it comes to providing credit. A change like this is just 10 years was not easy. it happened because our policies, intentions and decisions were clear,” Modi said.
Going ahead, the RBI must think differently, Modi said. “Shaktikanta Das is an expert in this regard,” the PM said.
Further, he said that RBI’s priority in the next ten years must be growth.
“In the next decade, RBI should give growth the highest priority, while focusing on trust and stability,” he said. RBI should now “focus on ease in credit access for needy sections,” he said.
Prime Minister Modi emphasized that in the upcoming decade, the RBI should prioritize fostering growth while maintaining trust and stability. He urged the central bank to concentrate on facilitating easier access to credit for underprivileged segments of society.
Highlighting the past lack of alignment between financial policies and the reality of double-digit inflation, Modi credited the government with granting the RBI the authority to combat inflation effectively.
Modi commended the six-member Monetary Policy Committee (MPC) for its commendable performance in fulfilling its mandate over the years.
He attributed the government’s efforts, such as fiscal consolidation and vigilant price monitoring, to the moderation of inflation. Despite challenges like the Covid pandemic and conflicts in various regions, Modi noted that inflation remains at a manageable level.
Modi praised India’s approach during the pandemic, balancing financial prudence with the needs of the common people.
The RBI’s Historic Journey RBI
The Reserve Bank of India, established in 1935, functions as the nation’s central bank. Initially tasked with currency issuance and banking services, the RBI’s role has expanded significantly over the years. From monetary management to regulation and supervision of the financial system, the RBI has been at the forefront of India’s economic development.
A Decade of Transformation RBI
Prime Minister Modi emphasized that the last ten years have been transformative for India’s banking sector and economy. Here are key highlights:
- Stabilizing G-Sec Yields: Despite monetary tightening, the RBI has successfully stabilized government security (G-Sec) yields. This stability has contributed to investor confidence and economic growth.
- Anchoring Inflation Expectations: The RBI’s vigilant approach to inflation management has anchored inflationary expectations. This stability is crucial for sustainable economic growth.
- Profitable Banking Sector: Efforts by the government and the RBI have led to a profitable banking sector. Increased credit growth and improved financial health have been instrumental in driving economic progress.
The Trailer of Achievements RBI
1: News18 2: The Economic Times 3: MSN
Prime Minister Modi aptly likened the RBI’s role to a “trailer of achievements” for India. Let’s explore some of these achievements:
- Financial Inclusion: The RBI’s initiatives, such as Jan Dhan Yojana and Aadhaar linkage, have brought millions of unbanked citizens into the formal banking system. Financial inclusion has empowered individuals and boosted economic participation.
- Digital Revolution: The RBI’s push for digital payments, UPI, and mobile banking has transformed the way Indians transact. From rural areas to urban centers, digitalization has bridged gaps and enhanced financial accessibility.
- Banking Reforms: The RBI’s regulatory reforms, including the Insolvency and Bankruptcy Code (IBC), have strengthened the banking sector. Timely resolution of stressed assets and improved governance have bolstered investor confidence.
- Monetary Policy Framework: The adoption of an inflation-targeting framework has ensured price stability. The RBI’s commitment to maintaining inflation within a specified range has been a game-changer.
In conclusion, the RBI’s journey from its inception to its current role as a catalyst for India’s progress is nothing short of inspiring. As we await the full feature film of achievements, let us acknowledge the RBI’s pivotal role in shaping India’s economic destiny.
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Neeraj Tiwari