India set to become world’s third-largest economy soon, banking sector posts best financial performance in a decade: RBI Deputy Governor Swaminathan J.

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New Delhi, July 11: As India looks set to become the world’s third-largest economy soon, the banking sector is performing best in a decade on financial indicators, according to Swaminathan J., deputy governor of the Reserve Bank of India (RBI). The central bank is busy improving its audit process to protect the integrity and stability of financial institutions, he said.

“Auditors and CFOs are key pillars of financial integrity and governance in our banking system. Auditors must apply due rigour in their audit processes to mitigate any potential discrepancies, under-provisioning or non-compliance with statutory and regulatory requirements,” Swaminathan told a conference in Mumbai. Job Creation in India: 12.5 Crore jobs created in India from 2014 to 2023, as per SBI study, the number of jobs created has increased four times from 2.9 Crore in 2004-14.

Swaminathan said the RBI has introduced structured meetings between supervisory teams and auditors, exception reporting and streamlined processes for appointing auditors. He also warned CFOs against evergreening of loans and fraudulent transactions through certain bank accounts with large amounts without valid reasons.

Swaminathan also emphasised on the importance of collaboration among stakeholders in the banking financial system. Meanwhile, India’s Financial Inclusion Index (FI-Index) for the fiscal year ended March 31, 2024, improved to 64.2 from 60.1 in March 2023, with growth recorded across all sub-indices, the RBI said. India aims to make progress in quantum technology, artificial intelligence, semiconductor and critical metals sectors in collaboration with US under Prime Minister Narendra Modi: Union Minister for Energy Dr Jitendra Singh

The improvement in the FI Index reflects the deepening of financial inclusion across the country. A renewed national focus on financial inclusion, promoting financial education and financial literacy, and extending credit to productive sectors of the economy, including the rural sector and the micro, small and medium enterprises (MSMEs), has led to the improvement in the FI Index.

(The above story first appeared on LatestLY on Jul 11, 2024 02:50 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website