Prime Minister Narendra Modi said on Wednesday that rumours were being spread about depositors' money being put at risk through provisions of the Financial Resolution and Deposit Insurance (FRDI) Bill.
The contentious bill, which aims to tackle insolvency, purportedly allows failing banks to use depositors’ money to cut losses.
The prime minister made the comments while addressing the Federation of Indian Chambers of Commerce and Industry's (FICCI) 90th Annual General Meeting in New Delhi in his first speech after the Gujarat election campaign.
During his speech, Modi said his government had done a great deal for the economy and taken a number of steps to boost the industrial sector. He said that FICCI and the industrial sector has been an integral part of the economy and had made significant contributions since independence.
Here are the highlights from his speech:
Modi questioned if the UPA government had taken any steps to remedy the issue of Non-Performing Assets (NPAs). He claimed that bad loans and other alleged scams during UPA's tenure such as Coalgate, 2G, and Commonwealth, had left the banking sector in a mess.
Entrepreneurs in India
With Mudra Yojna in full swing, Modi said that the government has managed to create three crore entrepreneurs, which will help strengthen the industrial sector. Other government programmes like Skill India will also help to create job opportunities, the prime minister said.
Modi pointed that his government has brought over 87 key major reforms in 21 sectors in the last three years. The sectors include aviation, defence, financial services, food processing and real estate. He said the key policy changes in the textile sector "will create one crore jobs."
India's Foreign Direct Investment (FDI) inflow
The prime minister said that around 75 percent of the total (FDI) in India has come in the last three years. He said the total FDI growth has been up to 80 percent.
Goods and Services Tax (GST)
Modi said that the government implemented GST after they were pushed to do so and questioned why there were objections now that it has been implemented.
“We implemented GST on the demand of traders. Our aim is to link every trader — big or small — with GST," he said.
Modi urged FICCI and the industrial sector to be actively involved with GST.
On the FRDI Bill, he said that rumours are being spread about depositors' money being at risk. He said, "Government is working towards protecting interest and rights of depositors but rumours being spread are totally the opposite."
He highlighted the importance of FICCI's role in putting to rest such rumours.
Eradicating black money
PM Modi pointed out that the measures taken by the government have helped eradicate black money and corruption.
"This government is working to end such a fight with the system. We are working to establish a system which is not only transparent but sensitive as well and that understands the needs of the people," he said.