Addressing a gathering in Mumbai to mark the 90th anniversary of RBI, PM Modi said the situation had changed vastly since he addressed the bankers 10 years ago at the 80th anniversary. The banking sector, which struggled with NPAs then, has been transformed and is now generating profits and showing record credit growth, he said.
“The economy and the GDP depend on coordination between fiscal and monetary policy… the transformation in the last 10 years was possible because of the change we brought about in motives, policies and decisions,” said Modi. If the motives were right, the outcomes would also be proper, he added.
Describing the developments in the last decade as only a ‘trailer’, Modi said there was a lot of work left to be done to take the country forward. “I am busy with the elections for the next 100 days. You take the time to prepare now. From the day after the swearing-in, there will be a lot of work to be done,” he told bankers.
“We must have a clear vision of the goal for the next 10 years. We have to expand digital transactions, keep sight of the changes that are taking place because of digital (transformation), and improve efforts on financial inclusion and empowerment,” said Modi. Artificial intelligence and machine learning will play a key role in taking India to the forefront in developing digital public infrastructure, even as innovation will play an important role in the 21st century, he added.
The PM said the banks were cleaned up through recognition of bad loans, recapitalisation with £35 billion and resolution of nonperforming assets.
