In order to remove anxiety of inflation and slowdown in global economy, Finance Minister Pranab Mukherjee praised the Indian banking system and said the Indian banking system is strongly regulated.
Finance Minister said, “The policies and strategies being adopted in India have proved to be very effective particularly after the world experiencing economic crisis in US and later in Europe in this globalization era under which any small country like Greece can also affect world economy as world is closely interlinked.”
In an open economy environment a sound banking system helps economy to grow faster as it channelizes funds and make them available for investment and any kind of collapse in banking system may affect the entire economy and its growth prospective.
According to Mukherjee, Indian banking system is strongly regulated. Some of the foreign banks collapsed only because of lack of regulations and their over greed attitude. The corrective measures done in 2008 crisis, seems to a failure as Euro Zone crisis is happening again. Over the years, India is making its journey towards achieving economic freedom since attaining political freedom 64 years ago.
Finance minister also narrated the development of the national policies which made banks to discharge their social responsibility right from the days of imposing social control and later their nationalization.
For achieving financial freedom, he said that financial inclusion is embarked upon with a goal of taking banking services in remote villages and hamlets in the country which are with a population of above 2000. All such villages which are about 73000 are assigned to all banks and respective banks have to provide banking services to all those villages by March 2012.