New Delhi: Prime Minister Narendra Modi on Thursday said his government is using all channels including diplomatic to bring back high-profile economic offenders, leaving them with no option but to return to the country.
Speaking at a symposium on credit flow and economic growth, he asked banks to support wealth and job creators with proactive lending while promising to stand by any loans given in right earnest.
"In our attempt to bring back fugitive (economic offenders), we relied on policies and law and also used diplomatic channels. The message is very clear — return to your country. We are continuing these efforts," he said.
He, however, did not name or refer to any particular offender.
India has in recent times stepped up efforts to extradite high-profile economic offenders such as Vijay Mallya and Nirav Modi, wanted in connection with bank frauds and money laundering cases.
While Rs 5 lakh crore has been recovered from defaulters through proactive steps, the recently set up National Asset Reconstruction Company (NARCL) would help resolve Rs 2 lakh crore of stressed assets, the Prime Minister said.
He also said the financial health of banks is now in a much-improved condition as his government has since 2014 found ways to address the problems they faced.
"Indian banks are strong enough to play a major role in imparting fresh energy to the country's economy, for giving a big push and making India self-reliant.
"This is a time for you to support wealth creators and job creators. It is the need of the hour that now the banks of India work proactively to bolster the wealth sheet of the country along with their balance sheets," he asserted.
Banks, Modi said, need to shed the culture of they being an approver and the customer being an applicant, and adopt the model of partnership.
"When the country is working so hard on financial inclusion, it is very important to unlock the productive potential of the citizens," he said.
Modi further said the reforms initiated by the government in the banking sector in the last six-seven years supported the banking sector in every way, due to which the sector is in a very strong position today.
"We addressed the problem of NPAs, recapitalised banks and increased their strength. We brought reforms like Insolvency and Bankruptcy Code (IBC), reformed many laws and empowered Debt Recovery Tribunal," he said.
Modi also nudged bankers to offer "customised solutions" to businesses and micro, small and medium enterprises (MSMEs).
"Don't wait for customers to come to banks. You have to go to them," he said, while assuring bankers that he will "stand by them like a wall" for every honest decision they take.
Asking banks to move ahead with a "big thinking and innovative approach", Modi said "we will become laggards if we delay adopting Fintech."
Setting a target for banks, he said by August 15, 2022, every bank branch should have at least 100 clients who conduct the entire business digitally.
Meanwhile, in a virtual address at the Sydney Dialogue, Prime Minister called on democratic nations to ensure that cryptocurrency does not end up in the "wrong hands", and cautioned that new-age technologies have the potential to be used as instruments of conflict and domination.
He said India has created a robust framework of data protection, uses data as a source of empowerment of people and has unmatched experience in doing this in a democratic framework with strong guarantees of individual rights.
Modi said the democracies must invest together in the research and development of future technology, create trusted manufacturing base and supply chains and work for preventing "manipulation" of public opinions.
He said technology and data are becoming "new weapons" and whether all the "wonderful powers" of technology will be instruments of "cooperation or conflict", "coercion or choice" and "domination or development" will depend on choices the nations make.
The Sydney Dialogue is a forum focused on emerging, critical and cyber technologies.
Modi said the biggest strength of democracy is its openness and a few vested interests should not be allowed to misuse it, noting that the digital age has redefined politics, economies and societies besides raising new questions on sovereignty, governance, ethics, rights and security.
He said the like-minded countries should develop technical and governance standards and norms consistent with their democratic values and create standards and norms for data governance.
"It should also recognise national rights and, at the same time, promote trade, investment and larger public good. Take crypto-currency or bitcoin for example," he said.
"It is important that all democratic nations work together on this and ensure it does not end up in wrong hands, which can spoil our youth," he added.