Prime Minister Narendra Modi on Monday called for the need to study a a “newer banking structure” to meet the evolving changes in the financial landscape which may require newer ways of financing, operating and business models.

The banking industry needs to ensure credit access and availability for projects that are necessary for the country’s growth, he said, also highlighting various risks such as artificial intelligence and blockchain, which are changing banking, cyber security and increasing reliance on digital banking.

“We need to think about the changes that will be required in the country’s banking sector and its structure,” Modi said at an event to celebrate 90 years of RBI. The central bank released a commemorative coin to mark the occasion.

The Prime Minister also called for the central bank to undertake a study to asses the need for private sector credit across various sectors of the economy, keeping in mind the growth prospects and potential of the country.

“Given the rapid changes taking place in today’s world, especially in the areas of technology, innovation, business practices and growing complexities in the financial sector, RBI is constantly evaluating the emerging trends and taking necessary policy measures to remain in sync with the evolving situation. Our effort is to anticipate situations and take proactive action,” Governor Shaktikanta Das said.

Policy making

Addressing members of the financial services industry, PM Modi said that there are new sectors being created such as space and tourism, and there is a need to develop expertise in funding these sectors. He added that Ayodhya is poised to become the biggest religious tourism centre in the world in the coming years.

He also jokingly warned members about the possible “flood of work” the day after he takes oath as PM for the third time, indicating that he remains confident of BJP winning the upcoming elections. The seven-phase election will be held from April 19 to June 1, and votes counted on June 4.

“Abhi 100 din chunav mein busy hoon. Aap ke paas bharpur samay hain. Aap sooch kar rakhiye kauki shapath lene ke doorse din hi dhama dham kaam aane wala hain. (I am busy with elections for the next 100 days. You have sufficient time to deliberate upon solutions because the day after taking oath, work will begin),” he said.

The BJP-led government will continue its efforts to make India more self reliant and the focus over the next 10 years will be to adapt to the changes arising from a more cashless economy, expand the scope of digital transactions, ensure credit access to all, improve financial inclusion and ease of doing banking, and integrate new AI & ML technologies.

“While deciding the target for the next 10 years, we have to keep one more thing in mind. That is the aspirations of the youth of India. India is one of the youngest countries in the world today. RBI has an important role in fulfilling this youth aspiration,” he said.

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