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Daijiworld Media Network - Udupi (JD)

Udupi, Jan 8: GST, demonetization, RERA and some other structural changes by the Government of India have impacted the Indian economy and the growth rate has gone down. But in the year 2021-2022 Indian economy will bounce back and it may attain the expected growth rate of 7-8%, said Sathish Marathe, director Reserve Bank of India.

Addressing an interactive session organized by Mahalakshmi Co-operative bank Ltd he said, "Make in India is making its impact. We are becoming manufacturers in defence, electronics and farming products. After the Chinese attack government hit back Chinese companies with restrictions and sanctions. During Covid, every industrial nation realized that their main manufacturing units have to be set up even outside China and these nations are looking at India as a substitute. 450 companies have shown their interest to set up plants in India. The agriculture sector has food storage of 2.5% more than what was nodded. Doubling farmers income is a motive of government now. Income in rural areas has undergone a change. But a proper mix of agricultural products and its allied activities is needed while lending." he said.

Speaking about the banking system in India, Sathish Marathe said, "Opening of Jan Dhan bank accounts made a great impact. About 50 crore people are still not connected with the financial system. Financial reach with mobile phones needs growth in India. During Covid crisis, every sector has worked smoothly and no one has faced any issues related to the cash crunch. Digital payments have grown drastically during this time. During the tenure of Chidambaram under the leadership of former RBI governor Raghuram Rajan, a study was conducted to set the road map of Indian banking structure. The disruptive innovations took place based on this report. The bank merger was done to avoid duplication and to reduce the cost of operation. In banking, we are not only concentrating on technology but also opting for better disinvestment practices. The upcoming financial year will be a difficult year in the banking sector. Interest rates will continue to fall. 78% of borrower accounts in urban banks have opted for moratorium announced by RBI, of this 78% not everyone will be able to repay the interest so next year could be a little difficult for the entire banking sector. Under normal circumstances gross NPA would be 12.5% in the worst case it could be even 14.75%," he said.

Addressing a question by the audience regarding the increase of frauds due to the increased usage of technology in banking system Marathe said, "Most of the frauds are taken place in advances because of diversion of funds outside the business, used for creating personal assets. There are elements within our country who have abused the banking system. Any account can be NPO, 80% is by borrowers with additional Rs 5 crore" he said.

Yashpal Suvarna, chairman Mahalakshmi Co-operative Bank Ltd welcomed the gathering. Directors of Mahalakshmi Co-operative Bank, Jayakar Shetty Indrali, general manager Badagabettu Credit Co-operative Bank, CA Ganesh Kanchan, Anand P Suvarna, businessman, Praveen D Naik, deputy registrar Co-operative, Anand Puthran, Manjunath S K, bank employees, students and others were present on the occasion.