Finance Minister Nirmala Sitharaman has emphasized that India’s banking sector will play a critical role in the country’s journey towards becoming a developed nation, or Viksit Bharat, by the year 2047. She highlighted this vision while speaking at the 90th Foundation Day celebration of the Bank of Maharashtra, a public sector bank.
In her speech, the Finance Minister stressed that banks will be instrumental in driving the agenda set by the Prime Minister for a prosperous and developed India. “Banks will have to play a crucial role in driving the agenda, and through your efforts, we will accelerate the momentum towards achieving this dream,” Sitharaman said.
Banks’ Crucial Roles in Building Viksit Bharat
Sitharaman outlined several key areas where banks will need to focus to support India’s growth:
- Infrastructure Development: Banks will need to provide strong support for the development of infrastructure, which is vital for the nation’s growth. Infrastructure projects often require large-scale funding, and the banking sector will be expected to ensure that this capital is readily available.
- MSME Support: The Micro, Small, and Medium Enterprises (MSMEs) sector is considered the backbone of the Indian economy. Sitharaman highlighted that banks should ensure need-based funding for MSMEs to help them grow and contribute to India’s development. Access to easy and timely credit can empower small businesses to scale up and drive economic growth.
- Financial Inclusion: Another crucial task for banks is to bring the unbanked population into the formal banking system. By doing so, banks can contribute to financial inclusion and ensure that every citizen has access to financial services. This will help in reducing economic inequality and improving overall financial literacy in the country.
- Increasing Insurance Penetration: The Finance Minister also called on banks to help increase the penetration of insurance services in India. Insurance is a critical aspect of financial security, and a larger number of individuals and businesses should be brought under its coverage.
The Role of Technology in Banking
Sitharaman highlighted how technology is transforming the banking landscape by providing a secure and easy-to-use digital banking experience. Digital banking platforms have made it easier for customers to access banking services from anywhere, anytime.
However, she cautioned banks to ensure that their digital systems are robust and secure, as cybersecurity is a growing concern in the digital age. “You cannot have a digital system that gets hacked, compromising the trust customers place in the banking system,” she said. To safeguard against such threats, banks need to have strong firewalls, conduct regular emergency drills, and be prepared to handle any digital security incidents.
UPI and Digital Payments
One of the key achievements in India’s digital revolution is the growing popularity of Unified Payments Interface (UPI), which has become a game-changer for digital payments. The Finance Minister proudly noted that 45% of all real-time digital payments in the world take place in India, thanks to UPI.
In addition to its success in India, UPI has also gone global, with operations now active in seven countries. This expansion showcases India’s leadership in digital payments and the efficiency of its digital infrastructure.
Conclusion
As India sets its sights on becoming a developed nation by 2047, the role of the banking sector will be more important than ever. From infrastructure development to financial inclusion and digital security, banks will have to step up and take the lead in driving the country’s economic agenda. With strong support from banks, India is well on its way to achieving its vision of Viksit Bharat.
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