Indian Economy News

Replacing 'phone banking' with 'digital banking' promoted growth: Prime Minister Mr. Narendra Modi

  • IBEF
  • October 17, 2022

On Sunday, Prime Minister Mr. Narendra Modi said that the BJP government's attempts to replace "phone banking" prior to 2014 with "digital banking" are to be credited for India's continued economic progress.

He referred to the former UPA administration and claimed that during "phone banking," banks were instructed over the phone as to who and under what terms and conditions they were required to lend money.

After dedicating 75 Digital Banking Units (DBUs) to the country via video conference, the Prime Minister remarked that "the economy of each country is as progressive as its banking sector is robust."

In the last eight years, he noted, the nation has switched from the "phone banking" system in place prior to 2014 to digital banking, and as a result, "India's economy is moving forward with a continuum."

The current administration, according to him, has reformed the financial industry with an emphasis on transparency. "The banking system received lakhs of billions of rupees back after making the identification of NPAs transparent. Banks were recapitalised, intentional defaulters were dealt with, and the Prevention of Corruption Act was changed," he observed.

Additionally, he continued, the implementation of the Insolvency and Bankruptcy Code (IBC) has aided in the transparent and methodical resolution of the banking industry's non-performing assets (NPAs).

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.