PM Modi at RBI, exudes confidence about returning to power

Prime Minister Narendra Modi on Monday described the transformation of the Indian banking sector as “a case study”, while addressing an event in Mumbai to commemorate the 90th anniversary of the Reserve Bank of India. At the function also attended by Union finance minister Nirmala Sitharaman, RBI Governor Shaktikanta Das and other RBI members, PM Modi unveiled a special Rs 90 denomination coin to mark the occasion.

PM Modi observed how the central government had pumped Rs 3.5 lakh crore capital in PSU banks, in a bid to revive the sector. “Transformation of the Indian banking sector is a case study. The government infused Rs 3.5 lakh crore capital in PSU banks for their revival. NPAs in banks have fallen to less than 3 per cent in September 2023 from a record high of 11.25 per cent in 2018; credit growth at 15 per cent,” he said.

“In 2014, when I attended the program for the completion of 80 years of the RBI, the situation was very different. The entire banking sector of India was struggling with problems and challenges. Everyone was doubtful regarding the stability and future of India’s banking system. The situation was so bad that the public sector banks were not able to provide enough boost to the country’s economic progress. And today, India’s banking system is seen as a strong and sustainable banking system in the world,” PM Modi said.

“This change has come because our policies, intentions and decisions were clear. Our efforts had stability and honesty. When the intentions are clear, then the policies are right. When policies are right, then the decisions are right. And when the decisions are right, the results are also right,” he said, stressing that the GDP of our country depends on how coordinated fiscal and monetary policies are.

Laying stress on easy banking and credit access, PM Modi added: “UPI has become a globally recognised platform. RBI is also working on a central bank digital currency.”

Prime Minister Modi said the monetary policy committee of RBI had worked very well on inflation targeting. “The last 10 years were just a trailer. We have to do a lot more to take forward our country. We gave inflation-targeting authority to RBI… Indian economy making new records when several economies are struggling to come out of the Covid pandemic impact. Inflation was at a moderate level even during the Covid pandemic, wars or any other external factor,” he said.

“A lot of work will be generated for everyone once the BJP-led NDA assumes office for the third term in June. We have to increase India’s economic self-reliance,” PM Modi added.

On the occasion, the Finance Ministry issued a special Rs 90 coin to commemorate the 90th anniversary of the RBI. This coin, made of 99.99 per cent pure silver, is around 40 grams in weight and is a symbol of the rich history and accomplishments of the bank over 90 years.

At the event, RBI Governor Shaktikanta Das said: “The Covid-19 pandemic and the ongoing geo-politics hostilities have tested the resilience of every economy of the world, including India. The well-calibrated and coordinated monetary and fiscal policies adopted in our country went a long way in shielding our economy from these shocks and helped us to emerge even stronger than before. It’s a matter of satisfaction that today our GDP growth is robust, inflation is moderating, the financial sector is stable, the external sector remains resilient, and the forex reserves at an all-time high.”

The Reserve Bank Of India started operating on April 1, 1935. The country’s premier banking institution is governed by the Reserve Bank of India Act, 1934, in accordance with the Hilton Young Commission’s recommendations. In 1937, the RBI’s Central Office was moved from Kolkata to Mumbai.