Banks should ‘deeply involve’ those under ambit of formal financial system, says President Kovind at event in Pune
He said the progress of the country depends on the contribution of the collective economic strength of the poor and urged banks to not leave any citizen behindUpdated: Feb 13, 2020 16:25 IST
Applauding banks for their efforts to bring in large unbanked population of the country into the formal financial system, President Ram Nath Kovind on Wednesday said the challenge now is to “deeply involve” those who have been brought into the fold.
Speaking at the golden jubilee celebration of the National Institute of Bank Management (NIBM) in the city, he said the progress of the country depends on the contribution of the collective economic strength of the poor and urged banks to not leave any citizen behind.
President Kovind appealed to the National Institute of Banking Management to create financial products for the poor sections of the population.
“The challenge before us is to deeply involve those included. I would urge all of you to think of financial products which meet the needs of those at the bottom of the ladder,” Kovind said.
Maharashtra governor Bhagat Singh Koshyari, Reserve Bank of India governor Shaktikanta Das, NIBM director K L Dhingra were present for the function.
President said that through financial inclusion by the Prime Minister Jan Dhan Yojana, we have taken rapid strides in covering the unbanked sectors of our population. The challenge before us is now to deeply involve those included.
“NIBM has good research facilities which need to be used for creation of financial products for the poor sections of the population. Progress of the country depends on the contribution of the collective economic strength of the poor. Self-help group movements, led by women, have shown the benefits, same can be replicated by investing in the poor.”
Kovind said, as the country aims to become a USD 5 trillion economy, the banking sector has to start preparing for the next big leap.
This mainly involves “banking with the unbanked” and “securing the unsecured”, he added.
“Banks have been a constant part of India’s growth. NIBM must take responsibility of creating a pool of trained human resource, which is skilled to serve banking institutions of global standards,” the President said.
Kovind said the regulatory oversight of the RBI has also brought greater stability to banking operations.
“I have learnt that recently role of Reserve Bank of India as regulator has been enhanced. We trust that this will deter malpractices and make our financial systems more credible,” he said.
The president said given the growing size of our economy, the country should aim to have more than just one name in the world’s top 100 banks.
He said schemes such as Mudra and stand-up India are channelling funds to aspirational entrepreneurs.
“I will request all bankers to keep a keen eye and not let a good idea die for lack of funding,” he said.
Kovind said the recent proposal of the government to enhance deposit insurance coverage from Rs 1 lakh to Rs 5 lakh is a positive step in the direction of assuring savers.
Speaking on the occasion, RBI governor Shaktikanta Das said the central bank continues to focus on strengthening the overall ecosystem of our banking and financial sector.
RBI to take measures to improve access of financial services to Divyang
President Ramnath Kovind instructed the RBI to take proactive measures to improve access to financial services to our Divyang (disabled) people. The disabled make up at least two per cent of our population and the banking system must integrate them in the financial system.