PMINDIA

Namaskar to all the colleagues associated with the financial sector!! You are well aware that a number of major steps have been taken in the financial sector in this year’s budget. We have presented a roadmap in this budget to strengthen every aspect of the financial sector whether it is banking, non-banking or insurance. You also get a glimpse in the budget regarding how we will make the public sector institutions stronger, and expand the private sector participation. Post-budget, this dialogue is important because both the public and the private sectors have to take all these steps forward. You should be aware of the priorities and commitments of the government and, more importantly, the government should also be aware of your suggestions and apprehensions. I think your active contribution to the speed at which we have to take the country forward in the 21st century is very necessary and, therefore, today’s dialogue is very important to take advantage of the prevailing situation in the world.

Friends,

The government’s vision regarding the financial sector of the country is very clear. There is no place for ifs and buts. Our top priority is that both the depositor and the investor should experience trust and transparency. The financial system of the country runs on one thing and that is trust – trust regarding security of his earnings, trust regarding flourishing of investments and trust regarding the development of the country. The old practices and arrangements of the banking and non-banking sectors are naturally undergoing a major change. And change has become mandatory for us also. You are very well aware how the banking and financial sectors of the country were harmed 10-12 years ago over aggressive lending. Several steps have been taken to extricate the country from non-transparent credit culture. Today, it is important to report NPA for even a day rather than sweeping it under the carpet or fudging entries to escape.

Friends,

The government understands very well that fluctuations do come in business. The government also agrees that it is not possible that every business will turn profitable and the results will be as per expectations. Sometimes, we do ponder when our son or any member of the family does not become what we had expected. Who doesn’t want his son to succeed, but sometimes, it does not happen. Therefore, the government understands all these things. At least, our government does not presume that there are bad intentions and selfishness in every business decision. Therefore, it is the responsibility of the government to stick with the decisions taken in the right earnest and we are doing it and we will continue to do so. And I want to tell all the people of the financial sector that I am always with you for anything done with the right intentions. Take it from me! Mechanisms like insolvency and bankruptcy code have given confidence to the lenders and borrowers today.

Friends,

The safety of earnings of ordinary households, effective and leakage free delivery of government benefits to the poor, promotion of infrastructure investment for the development of the country, all these issues are our priority. All the reforms that have been made in this sector over the years reflect all these goals. Be it the world’s largest financial inclusion, the largest digital inclusion, such a huge mechanism of direct benefit or the merger of small banks, the endeavor is to strengthen India’s financial sector vibrant and proactive. Even in this year’s budget you would find that we have taken this vision forward.

Friends,

This year, we have announced a new public sector policy. This policy also includes the financial sector. Our economy still has a lot of potential for banking and insurance. In view of these possibilities, we have taken a number of steps in this budget also. Some of the steps include privatization of two public sector banks, hiking the FDI cap in the insurance sector to 74 per cent, or the launch of IPO of LIC.

Friends,

It is our constant endeavor to encourage private enterprise more where possible. But, at the same time, an effective public sector partnership in banking and insurance is still needed for the country. It is very essential to protect the poor and the underprivileged. Emphasis is being given to equity capital infusion to strengthen the public sector. In addition, a new ARC structure is also being created which will take care of the NPAs of the banks. This ARC will continue to address these loans in a focused manner. This will strengthen public sector banks and increase their lending capacity.

Friends,

Similarly, a new Development Finance Institution is being created for the development of infrastructure and some industrial projects. These steps have been taken in view of the long-term financing needs of infrastructure and industrial projects. In addition, sovereign wealth funds, pension funds and insurance companies are also being encouraged to invest in infrastructure. New backstop facilities are also being provided to the corporate bond market to allow them to issue long-term bonds.

Friends,

This spirit is also being firmly pursued for Atmanirbhar Bharat. Atmanirbhar Bharat is not possible only through big industries or big cities. The contribution of the small entrepreneurs in villages and small towns and the hard work of the ordinary citizens is of great importance in the Atmanirbhar Bharat mission. The dream of Atmanirbhar Bharat will be realized through farmers and units that improve agricultural products. Atmanirbhar Bharat will be created from our MSMEs and start-ups. And a major hallmark of the Atmanirbhar Bharat will be our start-ups and MSMEs. Therefore, special plans were formulated for MSMEs during the Corona period. Nearly 90 lakh enterprises have taken advantage of these plans and received a credit of Rs 2.4 trillion. You also realize the importance of supporting and extending credit flow to these MSMEs and start-ups. The government has opened up several sectors like agriculture, coal and space for them by undertaking several reforms. It is now the responsibility of the financial sector of the country to identify these aspirations in villages and small towns and make them the strength of Atmanirbhar Bharat.

Friends,

As our economy grows rapidly, credit flow has become equally important. You have to see how credit is available to new sectors and new entrepreneurs. You should focus on creating new and improved financial products for new start-ups and Fin-techs. You all know very well that our Fin-tech start-ups are doing a great job today and exploring every potential in this sector. Our Fin-techs have had a huge share in the number of start-up deals that were finalized even during the Corona period. Experts point out that the momentum will continue even this year too, so you also have to explore new possibilities. Similarly, consider what will be your role in universalizing our social security coverage. Better suggestions and solutions will emerge from this webinar, as you have a deep understanding in this field. And I want you to put forward your views openly today. I firmly believe that the nectar that will emerge from today’s brainstorming session will be of great help for the Atmanirbhar Bharat and public welfare activities and also to deepen confidence.

Friends,

Over the years, better use of technology and the creation of new regimes have played a huge role in the financial inclusion. Today, 130 crore people in the country have Aadhaar cards; more than 41 crore countrymen have Jan Dhan accounts. About 55 per cent of these Jan Dhan accounts belong to women and about 1.5 lakh crore rupees are deposited in these accounts. Even during the Corona period, it has been possible to provide direct help to millions of sisters due to these Jan Dhan accounts. Today, UPI is having an average transaction of over Rs 4 lakh crore every month and the number of RuPay cards has also reached 60 crore. Financial services are now available to far-flung areas of the country due to Aadhaar and instant authentication, India Post Bank’s vast network and lakhs of common service centres. Today, more than two lakh Bank Mitras in the country are making available the banking service to people’s homes in villages with the help of the Aadhaar Enabled Payment System (AEPS) devices. More than 1.25 lakh post offices are also helping in this regard. You will be surprised to know that these Bank Mitras have helped the villagers to transact more than 53,000 crore rupees from their AEPS devices between April and June last year. And we have to remember that this was the time where there was a lockdown in India due to the Corona.

Friends,

Today, India can be proud that almost every section of the country has been included in the country’s financial sector in some way or the other. The country is now getting stronger from decades of financial exclusion. The Sabka Saath, Sabka Vikas, Sabka Vishwas mantra is clearly evident in the financial sector. Today, access to credit has been made possible for all, be it the poor, farmers, cattle farmers, fishermen, or small shopkeepers.

Loans amounting to about Rs. 15 lakh crore have been made available to small entrepreneurs through the Mudra scheme in the last few years. It includes about 70 per cent women and more than 50 per cent are Dalits, deprived, tribal and backward class entrepreneurs. More than 1,15,000 crore rupees have been deposited in the accounts of about 11 crore farmer households under the PM Kisan SvaNidhi scheme. A few months back, the Pradhan Mantri SvaNidhi Yojana was launched for our street vendors. This segment has been included for the first time in the financial sector of the country. A loan of Rs. 10, 000 has been given to about 15 lakh street vendors so far. It is not just a one-time inclusion. Their credit history will help them in securing more loans in the future. Similarly, cheaper loans are available to MSMEs through the digital lending platforms like Trade and PSB loans. The facility like Kisan Credit Card is rapidly liberating the small farmers, herders and the fishermen from the vicious circle of informal lending.

Friends,

Now, the private sector will also have to consider how to introduce innovative financial products for this segment of our society. Our Self-Help Groups have huge capabilities in every sector, from manufacturing to services. You must have experienced that these are the groups whose credit discipline is remarkable. The private sector can explore the possibilities of investment in rural infrastructure through such groups. It is not just a matter of welfare, but can also prove to be an excellent business model.

Friends,

The countries are now moving fast towards financial empowerment following financial inclusion. India’s Fin-tech market is estimated to be over Rs. six trillion in the next five years. A world class financial hub is being built in IFSC GIFT City In view of this prospect of the Fin-tech sector. Building modern infrastructure in India is also not just our aspiration, but it is the need for a self-reliant India. Therefore, many bold targets on infrastructure have been set in this sector. Investment is needed to meet these targets. All possible efforts are being made to bring in investment for the purpose. These targets can be achieved only with the active support of the entire financial sector.

Friends,

The government is also committed to empower its banking sector to strengthen our financial system. The banking reforms that have been carried out so far will continue even further. I am sure you will offer meaningful suggestions on the reforms and the implementation of the provisions in the budget. I am confident that the experts of this sector from the country and the world are going to guide us on this subject today. Your each and every suggestion is very valuable for my government. Please suggest what we can do for the roadmap ahead without any hesitation and how we can move forward together. How can we overcome your difficulties, if any? How can you become a partner in taking forward this country with responsibility? We want to discuss all the issues with a proper roadmap, targets and within time limits to draw maximum advantage. I know you time is valuable, but ever more valuable are your suggestions and our resolve. Thank you very much!