Union Finance Minister Pranab Mukherjee said on Sunday that a sound and resilient banking sector, well-functioning financial markets, robust liquidity management, and payment and settlement infrastructure had become pre-requisites for financial stability.
“In the post-crisis period ...we have seen how unfettered growth of the financial sector can have dangerous implications for both in the developed and the developing world,” said Mr. Mukherjee, delivering the second Sir Sorabji Pochkhanawala Memorial Lecture organised by the Central Bank of India here.
Financial stability and the banking system had, he said, become an integral part of policy discussions and macroeconomic objectives the world over. “The global financial crisis has compelled policymakers to rethink some of principles of economic management.”
The fact that India survived the global crisis, avoiding any financial turbulence, reflected the mature economic management of the country, observed the Minister. “Today, it is well established that our commercial banks are well regulated, vibrant, fast-growing and that they match the global best practices in capital adequacy, risk management and business growth.” He said the Indian banks were doing a commendable job in meeting the vast banking and credit requirements of an economy, which had grown at a rate close to 9 per cent in the last few years.
Mr. Mukherjee, however, regretted that the fruits of banking had not been distributed universally. He said financial inclusion was a key determinant of sustainable and inclusive growth which, in turn, was essential for building an equitable society. “A major unfinished task in this context is to promote greater financial literacy and investor protection.”
The multimedia campaign, ‘Swabhimaan,' launched to inform, educate and motivate people to open bank accounts, would help in providing basic services such as deposits, withdrawals and remittances on the doorstep through the services of Business Correspondents.
The initiative would also enable government subsidies and social security benefits to be directly credited to the bank accounts of the beneficiaries. “I see Swabhimaan as a watershed in the evolution of Indian banking” Mr. Mukherjee said.
Banks have been told to provide, by March 2012, their services to regions with a population of 2,000 or more. About 73,000 such habitations had been identified for receiving banking facilities through appropriate technologies.
During the current financial year, 20,000 villages were being covered under the scheme.
The Minister also launched the ‘Cent Kisan Gold Card' — a Swabhimaan initiative of the Central Bank of India — in the presence of its Chairman and Managing Director, S. Sridhar. This smart card aims to provide single-window, hassle-free financial support to farmers.
Source: http://www.thehindu.com
“In the post-crisis period ...we have seen how unfettered growth of the financial sector can have dangerous implications for both in the developed and the developing world,” said Mr. Mukherjee, delivering the second Sir Sorabji Pochkhanawala Memorial Lecture organised by the Central Bank of India here.
Financial stability and the banking system had, he said, become an integral part of policy discussions and macroeconomic objectives the world over. “The global financial crisis has compelled policymakers to rethink some of principles of economic management.”
The fact that India survived the global crisis, avoiding any financial turbulence, reflected the mature economic management of the country, observed the Minister. “Today, it is well established that our commercial banks are well regulated, vibrant, fast-growing and that they match the global best practices in capital adequacy, risk management and business growth.” He said the Indian banks were doing a commendable job in meeting the vast banking and credit requirements of an economy, which had grown at a rate close to 9 per cent in the last few years.
Mr. Mukherjee, however, regretted that the fruits of banking had not been distributed universally. He said financial inclusion was a key determinant of sustainable and inclusive growth which, in turn, was essential for building an equitable society. “A major unfinished task in this context is to promote greater financial literacy and investor protection.”
The multimedia campaign, ‘Swabhimaan,' launched to inform, educate and motivate people to open bank accounts, would help in providing basic services such as deposits, withdrawals and remittances on the doorstep through the services of Business Correspondents.
The initiative would also enable government subsidies and social security benefits to be directly credited to the bank accounts of the beneficiaries. “I see Swabhimaan as a watershed in the evolution of Indian banking” Mr. Mukherjee said.
Banks have been told to provide, by March 2012, their services to regions with a population of 2,000 or more. About 73,000 such habitations had been identified for receiving banking facilities through appropriate technologies.
During the current financial year, 20,000 villages were being covered under the scheme.
The Minister also launched the ‘Cent Kisan Gold Card' — a Swabhimaan initiative of the Central Bank of India — in the presence of its Chairman and Managing Director, S. Sridhar. This smart card aims to provide single-window, hassle-free financial support to farmers.
Source: http://www.thehindu.com
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