While talking about the key objective of Pradhan Mantri Jan Dhan Yojana (PMJDY), Arun Jaitley said that the initiative was to secure the unsecured, bank the unbanked and service the unserviced areas.
Finance Minister Arun Jaitley Thursday said that a high rate of economic growth is necessary to alleviate poverty and such economic expansion must be inclusive so that benefits of the economic development reach the poor. While speaking the 25th World Congress of Savings and Retail Banks, Jaitley highlighted measures undertaken by the Narendra Modi-led government and said that financial inclusion has been a top priority of the government to make growth inclusive.
“Economies like ours all over the world need a high rate of growth. We want to use growth as a mechanism to pull the maximum number of people out of poverty, improve upon the quality of life but we are conscious of the fact that dangers of development and progress benefiting a few and leaving many others out of inclusion system are also there,” Jaitley said.
The two-day 25th World Congress of Savings and Retail Banks was attended by members of World Savings and Retail Banking Institute (WSBI), banking policy-makers, savings and retail banks, and banking industry experts.
“…the penetration effect of growth will certainly take place but it will be a slow process and aspirational society is not willing to wait indefinitely,” he said, adding that the aspirational society, however, is not willing to wait indefinitely.
While talking about the key objective of Pradhan Mantri Jan Dhan Yojana (PMJDY), Jaitley said that the initiative was to secure the unsecured, bank the unbanked and service the unserviced areas. After launching the scheme, approximately 330 million accounts – were zero balance accounts – were opened within a few months, he added.
Once these accounts became operational, the government started formalising and digitising the economy, and GST and demonetization helped in that in a major way. Further, he stated that the government introduced the Mudra scheme for funding the unfunded.
On the back sharp increase in growth of agriculture, manufacturing, construction sectors as well as a low base year growth of 5.6% clocked in April-June 2017, the annual economic growth rose to over a two-year high of 8.2% in the three months to June 30, data available with the Central Statistics Office (CSO) showed.
Meanwhile, Moody’s Investors Service said that the Indian GDP is expected to expand 7.4% in 2018, and slow down slow down to 7.3% next year as domestic demand tapers on higher borrowing cost on account of to rising interest rates.