Public sector should participate in banking, insurance: PM Modi

NEW DELHI: Prime Minister Narendra Modi on Friday encouraged the public sector to participate effectively in banking and insurance.

Speaking virtually on aspects relating to financial services in this year's budget, Modi said that the government is committed to strengthening the banking sector. For this, the Centre will continue with its reforms process.

"There is still great scope for the banking and insurance sector. Decisions made by the government in Union Budget 2021 for privatisation of two public sector banks (PSBs), raising foreign direct investment (FDI) limit to 74 per cent in insurance and to bring LIC IPO have all been taken keeping this in mind," he added.

Emphasising that ensuring transparency and trust of investors and depositor's, PM said that the fintech market is likely to grow to Rs 6 lakh crore. Modi stressed on increasing credit flow to businesses to meet the needs of a fast reflating economy. He said financial products will have to be tailor-made for fintech and startups.

"As our economy is growing, and growing fast, credit flow has also become equally important. You have to see how credit reaches new sectors, new entrepreneurs. Now you will have to focus on creation of new and better financial products for Startups and Fintech," he said.