Backing India, Backing A Soon-To-Be $5 Trillion Economy

The Indian Government has set an ambitious target of achieving a $5 trillion size by 2024, which means doubling in five years. It is a matter of courage, of new dreams and will involve sacrifices as New India takes the world by storm. To fuel this growth, the country will rapidly need to accelerate the per capita income in a short time, a job that will involve heavy-lifting by India’s pride - the resilient banking industry.

Our idea of incredible India is not with regards to just one aspect but encompasses all. With the aim of Digital India,  digital banking has a major role to play in this movement. When it comes to lesser income groups, affordable housing is very much necessary. Even the agriculture sector should move towards adapting recent technology. Moreover profound growth of Industries including MSMEs will certainly lead to the employment of skilled youth of India – all of this is necessary for overall growth as a country.

Banking, as we know, is the life-blood of the Indian economy. Recent growth supporting policy steps measures gives more impetus to credit growth, and position Bank of Maharashtra as a flag-bearer of the massive growth and wealth creation that is set to take place. New India needs to evolve based on new ways. The old style of just brick-and-mortar banking has to be complemented with digital banking, which is growing at a fast pace. According to RBI data, digital transactions set to rise four times by 2021. Bank of Maharashtra offers customer-focused digital banking through Internet Banking, Maha Amulya Rewards, Maha Mobile, Maha UPI, Maha e-Pay and Personal--Digital Banking. The strong focus on growing per capita income means each and every citizen of India needs to be part of the financial ecosystem. The Government has already initiated the National Mission for Financial Inclusion (NMFI), namely, Pradhan Mantri Jan Dhan Yojana (PMJDY) and providing universal banking services for unbanked households, securing the unsecured, and taking banking to underserved areas. The Jan Dhan-Aadhaar-Mobile (JAM) infrastructure pipeline is providing the necessary backbone for DBT flows, adoption of social security/pension schemes, facilitating credit flows and promoting digital payments.

New India is for new business, enterprises, and activity, and delivers economic and social security to all. To further this cause, critical missions like Make In India, Stand Up India, Pradhan Mantri Mudra Yojana and Startup India have been launched. An array of measures focused on the ease of doing business in India have also been launched. To speed up financial inclusion, the Pradhan Mantri Mudra Yojana (PMMY) has enabled the flow of credit to small businesses.

In order to move towards creating a universal social security system for all Indians, especially the poor and the under-privileged, three ambitious Jan Suraksha Schemes or Social Security Schemes such as Pradhan Mantri Suraksha Bima Yojana (PMSBY),  Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Atal Pension Yojana (APY), pertaining to insurance and pension sector have been launched.

The focus on RAM (Retail, Agri & MSME) is set to contribute to nation-building. Bank of Maharashtra continues to focus on improving operational efficiency strengthening Retail, Agriculture and MSME (RAM). RAM% to total advances has increased to 54% as on 30.09.2019. MSME and retail outreach programs are raising awareness about banking products for the small and medium-sized businesses, which need to fire on all cylinders as the Indian economy leapfrogs into $5 trillion club in five years.

India cannot hope to grow big, without our villages becoming small towns. To achieve this, RSETIs or Rural Self Employment Training Institutes are set to play a crucial purpose. RSETIs, managed by banks with active co-operation from the Government of India and State Governments, are ensuring necessary skill training and skill up-gradation of the rural BPL youth to mitigate the unemployment problem. Once trained, rural youths with credit linkage assistance by the banks will start their own entrepreneurial ventures, and help to take our nation to greater heights. This will ensure the next orbit of sustained growth for all strata of Indian society.