Indian Prime Minister Narendra Modi took his `Make in India' philosophy to a notch high by exhorting the Reserve Bank of India to ensure that currency notes are printed on Indian paper with Indian ink.
Addressing the top brass of the central bank in an event to mark RBI's 80th anniversary, Modi raised the topic of `Make in India', a subject close to his heart. Modi said, “Mahatma Gandhi fought for Swadeshi. Does it behove us to print his photograph on imported paper? Does India not have the entrepreneurs to make the paper in India?” The PM urged the central bank to make a resolution that from a particular date all notes in India would be printed on Indian-made paper with Indian Ink. Central bank officials said that work was already in progress to source materials from India. They said that while most of the ink was available in India, the central bank at present continued to import two-color ink.
Having self-sufficiency in printing of currency notes would ensure that no enemy state can purchase similar paper from international suppliers. A few years ago, there were reports in the international press of the Indian government cancelling currency orders with a global provider of currency notes on quality concerns. According to RBI, during 2013-14 (July-June), an expenditure of Rs 32.10 billion was incurred on security printing compared to Rs 28.70 billion during 2012-13.
In his speech, the Prime Minister said there was commonality in thinking between the RBI and the government, which was why he was able to quickly grasp the points made by governor Raghuram Rajan during bimonthly meetings. Modi urged banks to be more understanding while dealing with the poor. Highlighting the success of the Jan-Dhan Yojana (JDY), which has garnered Rs 140 billion under 140 million accounts, Modi said, “You have seen poverty among the rich when it comes to repaying loans. Today, you are witnessing the wealth of the poor thanks to the JDY scheme.”
He pointed out that despite the JDY accounts being allowed zero-balance facility, more than 14% of these had balances. He said the government would soon launch the Mudra Bank, which will help the country harness the wealth generation and entrepreneurial ability of 525 million small businessmen. According to Modi, loans under the Mudra Bank scheme would be delivered through mobile banking.
The PM also urged bankers to ensure that farmers do not commit suicide for want of funds. “When farmers die, does it shake the hearts of bankers? He might be committing suicide because of his loan outstanding to moneylenders. Can we not dream that farmers do not have to go to moneylenders,” said Modi.
Modi expressed satisfaction over the role played by the central bank under Raghuram Rajan. “There is lot of similarity between the thinking of the RBI and government... This is absolutely essential. As a representative of the government, I express my satisfaction. RBI is performing its role and I congratulate Raghuram ji and his team,” he said.
