Prime Minister Narendra Modi on Friday said that his government is determined on increasing the credit flow to businesses to meet the needs of the recovering economy and added that financial products will need to be tailor-made for fintech and startups.
Addressing a webinar on the implementation of Budget in the Financial Services sector, Modi said that as the economy grows, credit flow to new entrepreneurs and businesses has to increase and products have to be tailored for fintech and startups.
The prime minister said that although the government’s endeavour is to promote the private sector, public sector presence in banking and insurance is also required.
“As our economy is growing, and growing fast, credit flow has also become equally important. You have to see how credit reaches new sectors, new entrepreneurs. Now you will have to focus on creation of new and better financial products for Startups and Fintech,” Modi said during his address to the Department of Financial Services.
He added that “the government is taking steps to make the financial services sector vibrant, proactive and strong”.
The prime minister said that his government would stand by all business decisions taken with the right intent.
Speaking on the lending norms, Modi said that his government understands that not all business ventures will be successful and there are ups and downs in every business but they are willing to stand by decisions that are taken with the right intentions.
He pointed out that in the name of aggressive lending, the banking and financial sector was badly hurt over a decade ago.
To lead the country out of the non-transparent credit culture, multiple steps have been taken over the years and today instead of brushing the NPAs under the carpet, they have to be reported mandatorily, the prime minister said.
He also stressed that his government is committed to strengthening the banking sector and the reforms will continue. Modi said that investors, depositor’s trust and transparency is the top priority of his government.
Speaking about the Budget 2021, the prime minister said that privatisation of two public sector banks, launching of the initial public offer (IPO) of LIC and raising the FDI cap in insurance to 74 per cent are the outline of the centre’s policy for the financial sector.
Narendra Modi said that it is the government’s endeavour is to promote private sector participation but the role of public sector banks and insurance companies in the sector are very important in the country.