"My effort is to take the banking system to normalcy as fast as possible in the new year. I have asked all concerned officers in government to focus their attention to this task," he said.
Addressing the nation on the eve of new year, the Prime Minister asked banks to work pro-actively especially for the rural and remote areas so that the difficulties of farmers and villagers can be removed.
"Amid this herculean effort, some grave crimes by some officers in some banks have come to light. Some government official also committed serious offences and tried to take advantage of the situation and they will not be spared," he said.
Stressing that Indian banking system has never received such a large amount of money in such a short time, he said "While respecting the autonomy of the banks, I appeal to them to move beyond their traditional priorities and keep the poor, the lower middle class, and the middle class at the focus of their activities."
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"Female employees too, worked till late hours as part of this mission. Post office staff, banking correspondents - all did exceptional work," he said.
Asking banks not to let go opportunity to serve poor in the centenary year of Pandit Deendayal Upadhyay, he said they should take appropriate decisions in public interest promptly.
"When policies and programmes are made with clear objectives in mind, not only are beneficiaries empowered, but both short term and long term benefits are achieved. Spending is carefully scrutinized, and chances of good results are maximized," he said.
SBI Chairman Arundhati Bhattacharya said initiatives aimed at benefiting the lower income segments of the country is indeed a welcome move by the government.
"It is fairly evident that the government is serious about comprehensive inclusion. Low cost housing should witness growth in the medium to long term. The government's commitment to a less cash society will also aid in reforming the tax structure for the better," she said in a statement.
The measures announced by the prime minister in terms of encouraging housing for lower-income groups will reinvigorate the sector and would go a long way in aiding financial inclusion, Axis Bank MD Shikha Sharma said.
According to Assocham the new schemes announced for 2017 would further help financial inclusion, give a boost to affordable housing, MSMEs (micro, small and medium enterprises) with a combined positive impact on the overall economic growth.
"In particular, the interest subsidy on loans for low cost housing, waiver of farm loans for two months and increasing the credit guarantee cover for MSMEs to Rs two crore would help the vulnerable sections of society and revive consumer confidence at the bottom of the pyramid," the chamber said.