RBI Governor Shaktikanta Das presented a memento to Prime Minister Narendra Modi during a ceremony to mark 90 years of the Reserve Bank of India in Mumbai on April 1, 2024.
| Photo Credit: PTI

Prime Minister Narendra Modi on April 1 said India needs to increase its economic self-reliance in the next 10 years to mitigate the impact of global crises, and make rupee more accessible and acceptable throughout the world.

The Prime Minister also said the workload on bureaucrats will increase substantially soon after formation of the BJP-led NDA Government at the Centre.

Also read: Why the RBI revised its GDP growth forecast to 7% in FY24

PM Modi was addressing the opening ceremony of the 90th anniversary celebrations of the Reserve Bank of India (RBI) in Mumbai. The RBI commenced its operations on April 1, 1935.

He highlighted the role of the RBI in speedy and sustainable growth of the country.

Noting the achievement of the RBI in infusing rule-based discipline and fiscally prudent policies in the banking sector, the Prime Minister asked for advance estimates of the needs of various sectors to take proactive steps while assuring the banks of government’s support.

PM Modi praised the role of the RBI’s Monetary Policy Committee (MPC) for taking steps to control inflation.

Steps like active price monitoring and fiscal consolidation kept inflation at a moderate level even during difficult times of the Covid pandemic, PM Modi said, lauding the RBI’s role in the progress of the economy.

“Nobody can stop a country from progressing if its priorities are clear,” he said, adding that India is becoming the engine of global growth with 15% share in world GDP growth.

PM Modi said the Indian economy is creating new records at a time when many countries in the world are still trying to recover from the economic shock of the pandemic.

Highlighting the importance of creating a balance between inflation control and growth for any developing country, he expressed confidence that the RBI can become a model and play a leadership role in the world, supporting the entire Global South.

“Friends, together we have to do another big thing in the next 10 years. We have to increase India’s economic self-reliance. We have to try that our economy should be least affected by global crises,” he said.

He emphasised the efforts to make rupee more accessible and acceptable throughout the world.

Stressing the importance of innovation in the 21st century, the Prime Minister asked to be prepared for proposals that will come with regard to cutting-edge technologies with teams and identification of personnel for the task.

He asked bankers and regulators to be ready for the needs of new and traditional sectors such as space and tourism.

He mentioned the expert view that in the coming years, Ayodhya is going to become the biggest religious tourism centre in the world.

PM Modi also underlined the importance of a strong banking industry for providing required funding to the projects of the nation.

He noted the changes brought about by technologies such as AI and blockchain and stressed the importance of cyber security in the growing digital banking system.

The PM also emphasised on the importance of coordination of monetary and fiscal policies in the GDP and the economy of the country.

He recalled the 80-year celebration of the RBI in 2014 and remembered the challenges and problems like NPA and stability faced by the banking system of the country at that time.

He said starting from there, “today we have reached a point where the Indian banking system is being seen as a strong and sustainable banking system of the world as the near moribund banking system of that time is now in profit and showing record credit”.

He said the gross NPA of the banks, which was around 11.25% in 2018, has reached below 3% by September 2023.

Also, the “twin-balance sheet” problem is now a thing of the past, and banks have registered a credit growth of 15%.

The RBI has played a significant role in all these accomplishments, he added.

The Prime Minister also released a commemorative coin to mark 90 years of the RBI.

Maharashtra Governor Ramesh Bains, Chief Minister Eknath Shinde, Deputy Chief Ministers Devendra Fadanvis and Ajit Pawar, Union Finance Minister Nirmala Sitharaman, Ministers of State for Finance Bhagwat Kishanrao Karad and Pankaj Chaudhary were present on the occasion, along with RBI Governor Shaktikanta Das.