Financial inclusion critical pillar of growing Indian economy: Prez Murmu

President Droupadi Murmu on Tuesday said financial inclusion is one of the critical pillars of the country’s economy, and that the role of banks has expanded beyond financial transactions as India is among the fastest growing economies in the world.

Banks are instrumental for inclusive and sustainable development, she said speaking at the ‘Swadeshi Banking Legacy – 120th foundation day celebrations’ of the Kumbakonam-headquartered City Union Bank (CUB), in Chennai.

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With the aspirations of the people having expanded in a dynamic economic landscape, banks are not mere custodians of wealth as they play a pivotal role in the growth story by offering a variety of services, she added.

Expressing confidence that banks like CUB are helping meet the national growth target, she underscored the need to enhance access to the vast majority of the population still living in the rural and semi-urban areas. The president called for ensuring affordable financial services to every citizen and praised the creditable performance of CUB in the area of financial inclusion.

Despite the progress made in digital services of banking like user-friendly mobile apps and wallets besides banking correspondents to reach out remote areas, Murmu pointed out that several challenges still confront in terms of digital illiteracy and internet access as well as financial awareness. Hence, she made it clear that people can be better integrated through combined efforts of all stakeholders.

Calling for empowering farmers and making the rural economy a priority, she emphasised the need for extending timely and affordable credit besides helping agri-tech initiatives to transform agriculture sustainable and profitable. They should also act as a catalyst in making MSMEs into engines of growth, she said and urged banks to come out with measures aimed at helping the underprivileged and marginalised sections.

She suggested special efforts for better integrating daily wage earners and migrant labourers with banking services.