Prime Minister Narendra Modi on Monday said that the banking sector is poised to achieve a big boost in growth in rural areas. This would be similar to the growth achieved by the telecom sector some years ago, Modi said after inaugurating IDFC Bank in the Capital.

Modi complimented IDFC for its successful journey of 18 years, and said that it was now embarking on a more challenging path, as it expands into banking, especially in rural areas. He said that from helping to build infrastructure, the organisation is now progressing to building lives ( jeevan-nirman ).

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

Key reforms

Modi described the banking sector reforms being undertaken by the Centre, especially in areas such as senior appointments, creation of a bank board bureau, re-capitalisation of banks, de-stressing of assets, empowering bank managements through zero-interference, creation of a framework of accountability through key performance indicators, and reform of governance of banks.

Speaking on the occasion, Rajiv Lall, MD & CEO, IDFC Bank, said: “We are truly honoured to have IDFC Bank launched by the Prime Minister. IDFC Bank will take forward the IDFC legacy — that of serving the nation — with even greater commitment and passion. There couldn’t have been a more opportune time to begin our journey in banking, given today’s supportive regulatory and macro-economic environment.”

The first-of-its-kind micro-ATM demonstrated at the ceremony digitises all essential transactions, has an in-built tablet and can work on multiple identifiers, that is, phone number, Aadhaar number, card and account number.

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.

IDFC Bank has started operations with 23 branches across the country, 15 of which are spread across three districts of Madhya Pradesh.

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