Mumbai: Prime Minister Narendra Modi on Monday April 1 said that the Reserve Bank of India had reached a historical milestone by completing the 90 years of its establishment.
PM Modi was addressing a ceremony marking 90 years of the Reserve Bank of India in Mumbai today. Seeking to highlight the achievements of the 10-year-tenure of the BJP government at the Centre, PM Modi said that the banking sector, “which was once at the cusp of collapse, is now profitable”.
He said that there had been a radical shift in the approach by the government vis-a-vis the banking sector in the last 10 years. “Right intention leads to right policy, which in turn leads to the right results,” he said.
"This change has come because our policies, intentions and decisions were clear. Our efforts had stability and honesty. When the intentions are clear, then the policies are right. When policies are right, then the decisions are right. And when the decisions are right, the results are also right, he said". The PM also released a special coin to commemorate the 90 years of RBI.
Recalling his participation at the 80th anniversary of the RBI, the PM said, "In 2014, when I attended the program for the completion of 80 years of the RBI, the situation was very different. The entire banking sector of India was struggling with problems and challenges. Everyone was doubtful regarding the stability and future of India's banking system. The situation was so bad that the Public Sector banks were not able to provide enough boost to the country's economic progress...," he said.
"And today, India's banking system is seen as a strong and sustainable banking system in the world," he added.
The PM said that the BJP government at the Centre has worked "on the strategy of recognition, resolution and recapitalisation". "The government did a capital infusion of Rs. 3.5 lakh crores to improve the condition of the Public Sector banks, did governance-related reforms. With the new systems of Insolvency and Bankruptcy code, loans of around Rs. 3.25 lakh crores were resolved," he added.
The event is also being attended by Union Finance Minister Nirmala Sitharaman and RBI Governor Shaktikanta Das.
"Join us for the commemoration of the 90th year of Reserve Bank of India (RBI@90). Address by Hon'ble Prime Minister @narendramodi and by Hon'ble Finance Minister @nsitharaman. Welcome address by RBI Governor @dasshaktikanta," RBI said in a post on X.
Established in 1935, RBI functions as the nation's central bank, following the recommendations of the Hilton Young Commission and governed by Reserve Bank of India Act, 1934. The functioning of this central bank is governed by the Reserve Bank of India Act, 1934 (II of 1934), and it began operations on April 1, 1935 with Sir Osborne Smith as the first Governor, responsible for functions such as currency issuance, banking services for banks and the government, and the development of rural cooperatives and agricultural credit.
In 1937, the Central Office of the Reserve Bank was also shifted from Kolkata to Mumbai. The RBI's role has expanded to cover monetary management, regulation and supervision of the financial system, management of foreign exchange, currency issuance, regulation and supervision of payment and settlement systems, and developmental roles over the years.
