Domestic savings played a major role in Indian economy: Pranab Mukherjee

Mumbai, July 13 (ANI): Finance Minister Pranab Mukherjee on Tuesday said the domestic savings have always played a major role in Indian economy and therefore there is a need to bring the savings of the people of the unorganized sectors into banking mainstream.

Addressing a gathering at the Unit Trust of India (UTI) headquarters in Mumbai, Mukherjee said there is a need to create awareness among the people to bring their savings in the national banking system in order to get better returns and for social security in their old days.

"The rate of domestic savings in the country on an average is around 34 percent, out of which domestic household savings contribute about 23 percent, which is a major contribution by domestic households," said Mukherjee.

The Finance Minister appreciated the corroborative efforts made by various financial institutions and public sector banks to bring more and more people in the banking network and to help the Government in achieving the objective of financial inclusion which is on its high priority.

"There are not enough branches in the country to provide banking facilities in a physical form and therefore new technologies are being used to provide banking facilities to the vulnerable and poor sections of the society," he added.

Mukherjee complimented the UTI for its accomplishments in promoting and mobilizing the savings of the different sections of our society and investing them in a diverse spectrum.

"I am very happy that institutions like Bharat Petroleum Corporation Limited and Corporation Bank have joined hands with the UTI in providing retirement saving plans to the underprivileged sections of the society, in pursuit of their corporate social responsibility goals," said Mukherjee.

"What particularly impresses me is the fact that the present initiative for decentralized programme for creation of investor awareness and fostering financial inclusion, in conjunction with the on-going Micro-Pension Initiative of the UTI, touches the key social welfare objectives of our Government in many ways," he added.

On the occasion, the UTI, BPCL and Corporation Bank launched a smart card of short distance vehicle operators jointly. (ANI)