Business & Economy

Kovind urges NIBM to train resources to serve banking institutions

NetIndian News Network

Pune, February 12, 2020

President Ram Nath Kovind today urged the National Institute of Bank Management (NIBM) to create a pool of trained human resources to serve Banking Institutions.

Addressing the golden jubilee celebrations of the NIBM, Kovind said the banks were the fulcrum of the economic system. Their efficiency in this role has earned trust and respect of the people.

“Our Constitution promised economic justice for all citizens. Banks were considered the crucial vehicle to deliver this Constitutional commitment,” he added.

“Our banks have done a commendable job in changing banking from an elitist pursuit to a service available to the common man. Millions of lives have been touched through direct transfer of funds under various welfare schemes to the bank accounts of the poor and the needy,” he pointed out.

Soon after independence, banks were also considered as part of a social contract of ensuring growth with equity. Considering importance of banks in the economic system of the country, the Banking Regulation Act was implemented in 1949.

“The founding fathers of our nation were very conscious of the role banks have to play as holders of public trust. Bankers should judge their actions by this touchstone given to us. As custodian of public money, banks have significant fiduciary responsibility in the economy.

“They have to take all possible prudential measures to ensure that trust is not betrayed in any manner. Recent proposal to enhance Deposit Insurance Coverage from Rs 1 lakh to Rs 5 lakh is a positive step in the direction of assuring the depositors,” he added.

India has become one of the largest economies in the world. Banks have been a constant part of India’s growth saga. As India aims to become a 5-trillion-dollar economy, the banking sector should start preparing for the next big leap.

This mainly involves “banking with the unbanked” and “securing the unsecured”. In this pursuit, he urged NIBM to take responsibility of creating a pool of trained human resource, which is skilled to serve banking institutions of global standards.

“India’s future journey will be greatly helped if banks exhibit deeper reach and become more efficient. Given the growing size of our economy, we should aim to have more than just one name in the world’s top 100 banks,” he added.