PM Narendra Modi said Monday the Reserve Bank of India should take steps to ensure fast, inclusive and sustainable (atmanirbhar) progress even while insulating the economy from problems faced by other countries, and internationalize the rupee.
Speaking at an event to mark RBI’s 90th anniversary (in photo), the PM asked the central bank to assess the credit needs of emerging sectors and take proactive steps to prepare banks. “RBI will have to think out of the box, and Governor Shaktikanta Das is an expert in that. Particularly, in emerging sectors,” said Modi. Prime Minister Narendra Modi said on Friday the Reserve Bank of India (RBI) should take continuous measures to ensure the country's fast, inclusive and sustainable progress and urged the central bank to insulate the economy from problems faced by other nations and take steps to internationalize the rupee.
PM was speaking at an event to mark the 90th anniversary of RBI. Modi asked RBI to assess credit needs of emerging sectors and take proactive steps to prepare banks. "RBI will have to think out of the box and governor Shaktikanta Das is an expert in thinking out of the box. Particularly in emerging sectors," said Modi. He said innovation will play an important role in the 21st century.
Modi said the situation had changed vastly since he addressed bankers at RBI's 80th anniversary at the same location. 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 GDP depend on co-ordination between fiscal and monetary policy.. the transformation in the last 10 years was possible because of the change we brought about in motive, policies and decisions," said Modi, adding that if motives were right the outcome would also be proper. "We must try to make India's economy aatmanirbhar (self reliant) to ensure that global events do not impact India. Today, India is a global growth engine contributing 15% to global growth. Our efforts should be to make the rupee more accessible and acceptable worldwide."
Modi said RBI, with its success in managing inflation and growth, despite the pandemic and two wars, can be a role model for other central banks. Pointing out that other countries have debt that is twice the size of their GDP, Modi said RBI should study this and ensure that India's credit growth is sustainable.
Describing developments in 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 next ten years. We have to expand digital transactions, keep sight of the changes that are taking place because of digital, and improve efforts on financial inclusion and empowerment," said Modi. He said artificial intelligence and machine learning will play a key role in taking India to the forefront in developing digital public infrastructure.
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