India's Reserve Bank Marks 90th Anniversary: Pivotal Role in Economic Growth Recognized

Indian Prime Minister Narendra Modi addressed the Reserve Bank of India's 90th anniversary celebrations, commending its role in shaping India's economy. He unveiled a commemorative coin and highlighted the RBI's responsibility for guiding the country toward fast-paced growth, trust, and stability during the crucial decade leading up to its centenary year. Emphasizing the significance of clear policy decisions, Modi lauded the government's transformative strategies for recognizing, resolving, and recapitalizing the banking sector, reducing gross NPAs, and improving financial inclusion through initiatives like Jan Dhan Yojana and PM Kisan Credit Cards.

Reserve Bank of India's 90th Anniversary: A Testament to the Institution's Pivotal Role in India's Economic Trajectory

Mumbai, April 1: The Reserve Bank of India (RBI), the nation's central bank, celebrated its 90th anniversary with an opening ceremony graced by Prime Minister Narendra Modi. The event was a testament to the institution's unwavering commitment to shaping India's economic landscape.

A Legacy of Transformation

Prime Minister Modi unveiled a commemorative coin, symbolizing the RBI's enduring contribution to the country's financial fabric. He lauded the institution's pivotal role in guiding India's economic growth, stability, and inclusivity.

Recognizing the significance of the next decade in India's journey towards becoming a developed nation, the Prime Minister emphasized the RBI's crucial responsibility in fostering fast-paced growth and maintaining trust and stability.

Emphasis on Policy Clarity and Inclusivity

Prime Minister Modi stressed the importance of clarity in policy, intentions, and decisions, highlighting the government's strategy of recognition, resolution, and recapitalization as a transformative force. He underlined the belief that right intentions lead to positive results.

The Prime Minister elaborated on the comprehensive nature of reforms undertaken by the government, including substantial capital infusions into public sector banks, governance-related reforms, and the successful implementation of the Insolvency and Bankruptcy Code.

Resolving Twin Balance Sheet Problem

Prime Minister Modi highlighted the significant reduction in gross non-performing assets (NPAs) of banks, indicative of the banking sector's improved health. He noted that over 27,000 applications involving underlying defaults of more than Rs 9 lakh crore were resolved before admission under the Insolvency and Bankruptcy Code. Gross NPAs have been significantly reduced from 11.25 percent in 2018 to below 3 percent by September 2023.

Financial Inclusion: Empowering the Unbanked

Prime Minister Modi emphasized the profound impact of RBI's initiatives on the lives of ordinary citizens, particularly in terms of financial inclusion. He cited the Jan Dhan Yojana and PM Kisan Credit Cards as exemplary schemes that have empowered millions of Indians in rural areas, catalyzing economic growth.

Cooperatives and Digital Currency

The Prime Minister recognized the boost given to the cooperative sector in the past 10 years, highlighting the importance of RBI regulations regarding cooperative banks. He also mentioned the impressive number of monthly transactions via the Unified Payments Interface (UPI), making it a globally recognized platform.

Touching upon the work being done on the Central Bank Digital Currency, the Prime Minister stated that the transformations of the past 10 years have enabled the creation of a new banking system, economy, and currency experience.

Economic Self-Reliance and Global Growth

Prime Minister Modi stressed India's growing contribution to global GDP growth, positioning the nation as an engine of global growth. He called for efforts to enhance the accessibility and acceptability of the Indian Rupee on the global stage, while cautioning against the rising trends of excessive economic expansion and increasing debt levels.

Role of Technology and Cybersecurity

The Prime Minister emphasized the need for the banking industry to embrace technological innovations such as artificial intelligence (AI) and blockchain. He highlighted the importance of cybersecurity in the digital banking ecosystem and advocated for a holistic approach towards the banking vision of a developed India.

Conclusion

The opening ceremony of RBI@90 was a resounding affirmation of the institution's pivotal role in India's economic trajectory. Prime Minister Modi's address served as a testament to the RBI's unwavering commitment to fast-paced growth, trust, stability, and financial inclusion. As the nation embarks on the next decade of its journey towards becoming a developed nation, the RBI's leadership and guidance will be indispensable in shaping the country's economic future.