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PM Modi wants RBI to prepare 20-year road map for financial inclusion

By FnF Correspondent | PUBLISHED: 02, Apr 2015, 13:52 pm IST | UPDATED: 02, Apr 2015, 13:52 pm IST

PM Modi wants RBI to prepare 20-year road map for financial inclusion New Delhi: Prime Minister Narendra Modi on Thursday asked the Reserve Bank to prepare a 20-year road map for financial inclusion and nudged banks to be considerate in giving loans to the poor as also while making recoveries from them, especially farmers.

"RBI will be completing 100 years in 2035...it will be appropriate for the central bank to work on the theme of financial inclusion and prepare a road map for achieving it," he said while addressing a function to mark the 80th anniversary of the Reserve Bank of India.

The other milestones for achieving financial inclusion could be 150th birth anniversary of Mahatma Gandhi in 2019, 75th year of Independence in 2022, 90th anniversary of RBI in 2025 and 100 years of RBI in 2035, the Prime Minister said.

"These are four important dates...we can create a road map for financial inclusion," he said, adding that the financial inclusion should not remain a government programme but should become "an article of faith".

Expressing concern of farmers' suicides and the plight of the poor people in the country, Modi asked the bankers to be considerate in providing financial assistance to poor.

Farmers' plight should, he added, shake up the conscience of the banking sector.

"Our farmers commit suicide. The pain of this should not only be restricted to newspapers and TV screens. When farmer dies, does it shake the heart of banking sector? Because of taking loan from money lender, he has to face death," Modi said.

The Prime Minister also called upon the bankers to extend credit to resource rich eastern states.

The Prime Minister said the success of the Pradhan Mantri Jan Dhan Yojana and the Direct Benefit Transfer of LPG subsidy, had shown the potential of the enormous role that the banking sector can play in ensuring financial inclusion.

The Prime Minister called for making financial inclusion a "habit." He asked banks to take inspiration from the success of women self-help groups. He asked banks to keep in mind the requirement of youth who needed either knowledge or skills. He also gave the example of the soon-to-be-launched MUDRA initiative in this regard. He urged banks to come up with creative financial inclusion instruments to help prevent farmer suicides.

The Prime Minister said that along with economic and social parameters, there is need to think of a geographical parameter as well for financial inclusion. He said eastern India had immense economic potential, and the banking sector should recognize and plan for this.

Appreciating the role played by RBI over the last 80 years, the Prime Minister complimented the RBI Governor Dr. Raghuram Rajan, for his grasp and clarity on economic issues.

As part of the Make in India initiative, the Prime Minister urged RBI to take the lead in ensuring that India starts to manufacture the paper and ink that are used to print currency notes.

The Governor of Maharashtra Vidyasagar Rao, the Chief Minister of Maharashtra Devendra Fadnavis, the Finance Minister Arun Jaitley, and the Governor of the RBI Dr. Raghuram Rajan were present on the occasion.
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