Inflation pressure reduced, development journey will continue; India will be the fastest growing country: RBI

If there is no lethargy on the part of the government regarding structural reforms, then the journey of rapid economic development of the country will continue further. This is the gist of the annual report released by the RBI on Tuesday. Inflation, which posed the biggest challenge during the last financial year, is improving and its rate is expected to come down from 6.7 percent during this period to 5.2 percent in the financial year 2023-24.
Despite low inflation, the country's economic growth rate will remain at 6.5 percent in the current financial year, which will be lower than the expected seven percent growth rate in the last financial year, but will be higher than all other major countries of the world. In the RBI report, it has been said about the reduction of challenges and increase of opportunities on every front of the economy.
In the report, the pace of India's economic growth rate in the year 2022-23 has been said to be seven percent. The special thing is that the RBI has changed the estimates of the economic growth rate of the last financial year several times. In this report, there has been talk of strength in almost every sector of the economy at the domestic level. If there is any challenge or problem, it will be due to global uncertainty and geopolitical tension.
Its effect can be clearly visible in the prospects of the growth rate. In such a situation, the government has been warned that it should not be lax about structural reforms and should continue them. According to RBI, it is very important to continue structural reforms to maintain the prospects of a faster growth rate in the medium term. This has been said keeping in mind the Ukraine war last year and the recent experience of some bank failures in the US and Europe.
According to the report, Indian banks and non-banking financial companies (NBFCs) remain strong, but their ability to face newly emerging risks needs to be examined. New rules will be announced in this regard in the year 2023-24. It has also been indicated that changes will be made in the existing system regarding the settlement of the case of companies unable to repay the loan.
Digital banking will be promoted and the Tez report has also informed about several future steps to enhance the quality of existing facilities for bank customers. Keeping the convenience of the customers at the center, new efforts will be made to make the banking sector more secure from cyber attacks in the country and it has also been said to increase the spread of digital banking rapidly.
Steps will be taken soon to make India's digital payments system more state-of-the-art and expand the scope of use of UPI. Under this, a decision has to be taken to use UPI like a pre-paid credit card. It has also been told that plans are being made to improve the existing system for the speedy redressal of complaints from general banking customers. Under this, artificial intelligence will be used.