PM pitches for currency-less banking to curb black money

The Prime Minister said the entire banking sector is undergoing major transformation with the advent of latest technology, and the future of banking would not just be premises-less and paper-less, but also, eventually, currency-less, and this would help curb black money.

Speaking at the launch event of the IDFC Bank, Modi further highlighted that now the government official are working on linking all the procedures related to the banking sector with the latest technology, so that both the government and the country people would experience a hassle free banking procedures.

“The banking sector is seeing changes”. “Bad loans in the past few years are a problem but we can’t only cry about it…We are trying to solve this problem”

According to the Prime Minister, soon the currency printing cost will come down in the country, and stressed on the need for banks to tap the enormous potential in the rural areas of the country through mobile banking. Lall said that with 90 crore Aadhaar card-holders having biometric identification, 15 crore Indians using smart phones, and Internet usage growing faster than ever before, an age of unconventional banking is inevitable.

“The possibility of black money will gradually become negligible”, he added. He listed out a seven-point agenda to improve operations of state-owned banks, including re-capitalisation, setting up of the Bank Board Bureau and introduction of a framework for accountability.

Amid continued concerns about levels of non-performing assets (NPAs), or bad debts, of public sector banks, Finance Minister Arun Jaitley had said last month in Mumbai that the government may consider reducing its stake in them to 52 percent.