RBI Deputy Governor Dr. Michael D. Patra addresses ‘Financing 3.0 Summit’ in Mumbai

By  Firstdespatch Desk   Sep 03, 2024

Dr. Michael D. Patra, Deputy Governor of the Reserve Bank of India (RBI), stated that a robust finance sector is crucial for underwriting India’s inclusive and sustainable future due to its role in facilitating capital accumulation, lowering transaction costs, and managing risks. While addressing the ‘Financing 3.0 Summit’ organised by the Confederation of Indian Industry (CII) in Mumbai today, Dr. Patra highlighted India’s remarkable growth story.

Dr. Patra emphasised that the role of finance in shaping and reshaping India’s future is indisputable, given the deep nexus between finance and growth. Dr. Patra outlined five specific sectors, including infrastructure financing, micro, small, and medium enterprises, skilling, climate change, and digitization,  where finance will be pivotal in supporting India’s rise as a major power.

Addressing the infrastructure gap, Dr. Patra called for increased private-sector participation. The Deputy Governor noted the ongoing under-service of the MSME sector and stressed the role of banks, fintechs, and NBFCs in meeting its needs.

Dr. Patra advocated for financing sustainability initiatives, such as the green hydrogen mission and net-zero goals, including the use of sovereign green bonds. Dr. Patra mentioned government and RBI measures like disclosure norms for climate financing and 100% FDI for renewable energy under the automatic route.