Prime Minister Narendra Modi on Monday, while addressing an event commemorating the 90th anniversary of the Reserve Bank of India, applauded the central bank for achieving its targets and objectives. Stating that the RBI is known across the world for its professionalism and commitment, he said that the country’s GDP is dependent on coordination between monetary and fiscal policies. The prime minister said that the central bank has been able to stabilise G-sec yields despite monetary tightening and has also been successful in anchoring inflationary expectations. The Prime Minister asserted that this decade is key for achieving Viksit Bharat.
Further, PM Modi said that with the efforts of the RBI, the Indian banking sector today is being known globally for its strong and sustainable growth and its transformation is a case study. “The transformation in the banking sector could only be possible because there was a clear policy, intent and decisions taken by the government,” he said while stating that the government infused capital of Rs 3.5 lakh crore in PSU banks for their revival.
He said that the Indian banks are now profitable and credit growth is touching record levels. Gross NPA for banks came down from 11.25 per cent in 2018 to less than 3 per cent in September 2023. The prime minister declared the resolution of the “twin-balance sheet” problem and a substantial increase in credit growth, crediting the RBI for its significant role in these achievements.
He further stated that the transformation of the banking sector in the past 10 years is also highlighted by the fact that today, UPI has become a globally recognised platform with more than 1200 crore monthly transactions. In the coming ten years, the central bank must prioritise advancing digital transactions and financial inclusion, he said. He continued by saying that a developing economy has to balance growth and inflation management. “Whatever developments have taken place in the past 10 years is just a trailer, there is a lot that needs to be done and we collectively need to take the country ahead,” he said, while maintaining that it is crucial for India to have a clear strategy for the growth in the next 10 years.
The Reserve Bank of India is celebrating 90 years this year. RBI was founded in 1935 and is regulated by the Reserve Bank of India Act, 1934, as well as the Hilton Young Commission’s recommendations.