Banking Sector Helped India's Ascent in Digital Transactions: VP
Highlighting the transformative impact of digital payments, he said UPI had made financial transactions convenient even for small traders and roadside vegetable vendors, who could now accept payments directly into their bank accounts without handling cash
Thoothukudi: Vice-President C.P. Radhakrishnan has credited India's banking sector with playing a pivotal role in the country's emergence as the world's leading nation in digital transactions through the Unified Payments Interface (UPI), saying financial inclusion and the expansion of banking services had been instrumental in driving economic growth.
Addressing the 105th foundation day celebrations of Tamilnad Mercantile Bank (TMB) in Thoothukudi on Wednesday, in the presence of Governor Rajendra Vishwanath Arlekar, he said the Union government's financial inclusion initiatives over the past 15 years had taken banking services to even remote villages.
Citing the World Bank's Global Findex 2025 report, he said nearly 89 per cent of Indian adults had bank accounts. As of March 6, 2026, banking facilities were available within a five-kilometre radius of 99.92 per cent of the country's villages, reflecting the progress made in financial inclusion.
He said India had risen from the world's 10th largest economy to the fourth position and was now aspiring to become the third largest, attributing the progress to the Narendra Modi-led government's economic initiatives.
Highlighting the transformative impact of digital payments, he said UPI had made financial transactions convenient even for small traders and roadside vegetable vendors, who could now accept payments directly into their bank accounts without handling cash. Public and private sector banks and financial institutions had played a vital role in making this transformation possible, he added.
Referring to TMB's performance, Radhakrishnan said the bank's total business had crossed Rs 1.30 lakh crore by September 2026, registering annual growth of over 27 per cent. Its quarterly net profit had also crossed Rs 450 crore for the first time, while its non-performing assets had declined.
He urged the bank to aspire to become one of India's leading private sector banks over the next 50 years, while expanding its support to farmers, small traders, MSMEs and large businesses.