Prime Minister Narendra Modi on Thursday asked the banking sector to start lending to the underprivileged including poor farmers, poor students and people running small businesses so that their financial condition could improve which will ultimately contribute to India’s economic growth. “You must come out with innovative financial inclusion instruments to ensure that the farmer does not commit suicide due to lack of bank funding,” Mr. Modi said. “Our poor students need bank loans to pursue quality higher/technical education and training to be skilled. Lending them can be the biggest financial inclusion. I can assure that you will not see the current Non Performing Asset (NPA) level as these hardworking people will surely return your money,” the Prime Minister said. He was speaking at a conference on financial inclusion organized here to celebrate the 80th anniversary of the Reserve Bank of India (RBI). Mr. Modi said over five crore people engaged in small times businesses need an average loan of Rs. 17,000 to scale up and enhance their income. And the banking system must consider lending them. He said government will shortly launch the MUDRA Bank in this regard. He urged the RBI to set milestones for financial inclusion over the next 20 years so as to transform the lives of the poor. “I have come here to ask for something as a representative of the poor, marginalized and tribals; I grew up as a poor and I know what it means. I seek help on their behalf and trust you will not disappoint me,” Mr. Modi said while making a strong case for the poor to be provided with all sorts of banking services.
