Implications of new bank licences - B Mahapatra

Inaugural address by Mr B Mahapatra, Executive Director of the Reserve Bank of India, at 

the Post Graduate Students’ Conclave on “Implications of new bank licences”, at the National Institute of Bank Management, Pune, 28 September 2013

....Finance is fuel for the economy. Banks being at the core of the financial system, provide this fuel. The progress of the real economy depends upon the growth of the banking and financial system. An efficient financial system transforms the savings into investments and channelizes the investments to productive sectors of the economy to spur growth. India is an emerging market economy and has the potential to grow faster. As the Indian economy refocuses on the expansion of manufacturing and infrastructure sectors, the credit needs of the real economy would be much higher compared to the services sector. Entry of new banks would, in a way, help in the economic development of the country..........

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