RBI helped in financial inclusion and relief programmes during the pandemic: Modi

Prime Minister Narendra Modi on Friday said that the RBI's measures, be it technological integration or reforms that bolstered financial inclusion, facilitated the Government's relief and development programmes during the pandemic.

Launching two customer centric initiatives of the RBI – the Retail Direct Scheme and the Integrated Ombudsman Scheme – the PM said that in the past few years in the country's banking sector reforms have aided distributive justice, development programmers and relief measures. “We have seen their strength in this difficult time of Covid. The decisions of the RBI complimented the big decisions that the government has taken in recent times,” he said.

The PM lauded the Finance Ministry and the RBI for their steering the economy during the pandemic. “This period of Amrit Mahotsav, this decade of the 21st century is very important for the development of the country. In such a situation, the role of RBI is also very big. I am confident that Team RBI will live up to the expectations of the country,” the Prime Minister said.

Easier access to capital markets

Referring to the two schemes launched on Friday, the Prime Minister said that these schemes will expand the scope of investment and make access to capital markets easier, more secure for the investors. “Retail direct scheme has given small investors in the country a simple and safe medium of investment in government securities,” he said while adding that One Nation, One Ombudsman System has taken shape in the banking sector with the new scheme.

The PM was optimistic that the Retail Direct Scheme will facilitate the inclusion of the middle class, employees, small businessmen and senior citizens with their small savings directly and securely in government securities. As government securities have the provision of guaranteed settlement, this gives assurance of safety to the small investor, he said.

The Prime Minister said that in the last 7 years, NPAs were identified with transparency, the focus was on resolution and recovery, public sector banks were recapitalised, and one after the other reforms were carried out in the financial system and public sector banks. He added, to further strengthen the banking sector, cooperative banks were also brought under the purview of the RBI. Due to this the governance of these banks is also improving and the trust in this system is getting stronger among the depositors,

The PM said till about 6-7 years ago, banking, pension and insurance, were not accessible to the common citizens in the country, poor families, farmers, small traders-businessmen, women, dalits-deprived-backward, etc. Criticising the earlier system, the PM said those who had the responsibility of taking these facilities to the poor never paid any attention to it. Rather, various excuses were made for not changing. It was said that there is no bank branch, no staff, no internet, no awareness, no idea what the arguments were, he lamented.

The PM said UPI has made India the world's leading country in terms of digital transactions in a very short span of time. In just 7 years, India has jumped 19 times in terms of digital transactions. Today our banking system is operational 24 hours, 7 days and 12 months anytime, anywhere in the country, he said.

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