PM Modi praises RBI’s 90-year milestone, says it can take India's success to a global level

Prime Minister Narendra Modi praised the Reserve Bank of India (RBI) on Monday for completing 90 years. Calling the achievement a "historic milestone", he said that RBI can take India's success to a global level, which could greatly benefit the global south.

Noting that the RBI has witnessed both pre-independence and post-independence periods, PM Modi stated that the central bank is well renowned for its professionalism and commitment worldwide.

"In 2014, when I came for the 80th anniversary of RBI, the situation was grave. India's banking sector struggled with many difficulties like non-performing assets (NPAs). People were sceptical about the sector's growth. Public sector banks could not take care of the country's economic needs. Today, India's banking system is considered strong and sustainable. The system once on the verge of collapse is now making huge profits," he said while addressing an event in Mumbai.

The prime minister noted that the gross NPA of the banks, which stood at 11.25% in 2018, was less than 3% by September 2023. "The 'twin-balance sheet' problem is now a thing of the past. Banks now register a credit growth of 15%. RBI has played a significant role in all these accomplishments," he said.

"The transformation occurred because there was honesty and consistency in our efforts. If the intention is right, the policies bear the right fruit. We left no stone unturned for the growth of the banking sector. The BJP government worked with the policy of recognition, resolution and recapitalisation. To improve the situation of the PSBs, the BJP government infused capital of around ₹3.5 lakh crore and also brought reforms related to governance," he added.

The prime minister also praised UPI and said it has become a globally recognised platform, recording over 1,200 crore transactions monthly.

"In just ten years, we have entered a new era of the banking sector, economy, and currency exchange. We have to deliberate more on the possibilities of digital transactions. We also have to monitor the channels of a cashless economy and ensure that we foster a financially inclusive culture," he said.

In conclusion, the PM said that the RBI can take India's success to a global level.

"For any developing country, inflation control and GDP growth are unique necessities. RBI can pioneer the world in this regard. The entire global south will greatly benefit from this," he said.