India to become world's third largest economy soon, says RBI Guv; hails PM Jan Dhan Yojana

Indore, Aug 30 (PTI) Reserve Bank of India (RBI) Governor Sanjay Malhotra on Saturday said India will become the world's third largest economy soon, and credited the Pradhan Mantri Jan Dhan Yojana for boosting the country's growth.

His remark came at a time when India's GDP grew 7.8 per cent in the April-June quarter of the current fiscal, the highest in five quarters before the imposition of heavy tariff on the country by the United States.

Addressing 'Santripti Shivir', a financial inclusion campaign by government banks, at Rangwasa village here, Malhotra said the Union government and the RBI had launched the Jan Dhan Yojana in collaboration with banks 11 years ago, leading to development across the nation.

"Today, India is counted among the five most developed countries in the world and very soon the country will become the third largest economy," he said.

The RBI governor said 55 crore accounts have been opened under the scheme to ensure participation of people from all sections in the country's growth journey, providing them with savings, pension, insurance, credit and other services.

He underlined the need for Pradhan Mantri Jan Dhan Yojana account holders to update their details under the 'Know Your Customer (KYC)' process within the stipulated time to prevent possible misuse of accounts and to ascertain whether they have turned into 'mule accounts'.

A 'mule account' is a bank account that criminals use, sometimes without the knowledge of the account holder or occasionally with their connivance, for receiving, transferring or laundering illicit funds.

The RBI governor said people should improve their digital literacy and financial awareness so that they can protect themselves from banking frauds.

He urged the public to make greater use of digital banking and UPI.

Expressing satisfaction over the significant participation of women in the financial inclusion campaign, Malhotra said they are playing a major role in the country's development.

He pointed out that banking services at present are being provided through bank branches or 'business correspondents' (bank representatives who deliver banking services in remote areas) within a radius of 5 kilometres of almost all villages in the country.

The Central government and the RBI, in collaboration with banks, launched a nationwide financial inclusion campaign on July 1 which will continue till September 30. The campaign includes opening new Jan Dhan accounts, enrolling people under social security schemes and completing the KYC process of account holders.

Malhotra asked banks to accelerate this campaign with the help of government department employees and public representatives while asserting that "a long journey still lies ahead in achieving the goals of this mission".

State Bank of India (SBI) Chairman C S Setty was also present at the event. PTI HWP LAL NP BNM