IBC has resolved loans of Rs.3.25 lakh crore
The Prime Minister, Narendra Modi, said Rs.3.5 lakh crore was infused into the ailing banking system that has helped public sector banks along with many governance-related reforms.
Addressing the RBI@90 opening ceremony in Mumbai on 1 Apr, he elaborated on the comprehensive nature of reforms, and highlighted the government worked on the strategy of recognition, resolution and recapitalization.
Just the Insolvency and Bankruptcy Code has resolved loans amounting to Rs.3.25 lakh crore, the Prime Minister https://www.pmindia.gov.in/en/prime-ministers-office/ informed that more than 27,000 applications involving underlying defaults of more than Rs.9 lakh crore were resolved even before admission under IBC.
Gross NPAs of banks https://www.worldbank.org/en/home is down to below 3% in September 2023 from 11.25% in 2018.
He pointed out that the problem of twin balance sheets is a problem of the past.
The Prime Minister also touched upon the work being done on Central Bank Digital Currency, adding that the transformations of the past 10 years have enabled the creation of a new banking system, economy and currency experience.
Stressing the diverse banking https://www.adb.org/ needs of a large country like India, the Prime Minister underlined the need to improve ‘ease of doing banking’ and provide tailor-made services as per the needs of the citizens. He underscored the role of artificial intelligence and machine learning.
“Nobody can stop a country from progressing if its priorities are clear,” the Prime Minister emphasized.
“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 https://www.imf.org/en/home of the pandemic,” the PM Modi said.
He underlined the role of RBI in taking India’s successes to the global level, and expressed confidence that RBI can become a model for this and play a leadership role in the world, thereby supporting the entire global south region.
Touching on opportunities, he gave the example of the green energy sectors solar energy, green hydrogen and ethanol blending.
He also touched upon indigenously made 5G technology and rising exports in the defence sector while MSMEs are becoming a backbone of India’s manufacturing sector.
He stressed the RBI come up with out-of-the-box policies to ensure credit availability for the youth associated with the new sectors.
PM Modi also stressed increasing the economic self-reliance of India in the next 10 years so that the impact of global issues is mitigated. “Today, India is becoming the engine of global growth with 15% share in global GDP growth.”
He emphasized the efforts to make Rupee more accessible and acceptable throughout the world.
He also touched upon the rising trends of excessive economic expansion and increasing debt and pointed out the private sector debt of many countries has doubled their GDP.
Debt levels of many countries are also creating a negative impact on the world, he said. The Prime Minister suggested RBI conduct a study on this keeping in mind the prospects and potential of India’s growth.
He noted the changes brought about by technologies like AI and BlockChain and noted the importance of cyber security in the growing digital banking system.
He asked the audience to think about the required changes in the structure of the banking system in light of fin-tech innovation as new financing, operating and business models will be needed.
“Meeting the credit needs of global champions to street vendors, of the cutting-edge sectors to traditional ones is critical for Viksit Bharat and RBI is the appropriate body for the holistic appreciation of the banking vision of Viksit Bharat,” the Prime Minister said. fiinews.com
