In a bid to allay fears of inflation and economic crisis, the Finance Minister Pranab Mukherjee on Monday said that the Indian banking system is strongly regulated.
"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 globalisation era under which any small country like Greece can also affect world economy as world is closely interlinked on Monday," said Finance Minister Pranab Mukherjee in Pune on Monday. He was addressing staff members of the Bank of Maharashtra during his visit to bank's headquarters.
He added, "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."
Mukherjee narrated the evolution of national policies under the leadership of late Pandit Jawaharlal Nehru and Indira Gandhi which made banks discharge their social responsibility right from the days of imposing social control and later their nationalisation.
To achieve the financial freedom, Mukherjee 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.
