PMINDIA

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Intervention by PM at the G20 Working Session: Enhancing Resilience

Excellencies,

I commend the G20 for its successful efforts to build a more resilient and open global financial system.

It is an essential foundation of growth and stability in the global economy.

In India, Government and the Central Bank, are taking steps to further strengthen the financial and banking sector.

As we work on this important issue in G20, I wish to highlight a few points.

We should bear in mind that higher capital requirements should not become a constraint on promoting financial inclusion or functioning of the banking sector in developing countries.

Indeed, effective supervision and better use of technology can reduce capital requirements.

Cyber security is important for the protection of the banking infrastructure.

IMF should remain a quota based institution and not depend on borrowed resources.

I hope that the ratification of the reforms of 2010 in the United States would be completed at the earliest.

I congratulate the Turkish Presidency for delivering the Base Erosion and Profit Shifting package for our endorsement within the agreed timeframe.

I also welcome the Automatic Exchange of Information initiative, and look forward to collective action to implement it.

In India, my Government has zero tolerance on corruption and black money. We have enacted a new law to deal with undisclosed assets and income kept abroad. We have also entered into a number of bilateral tax treaties.

We have also launched an effective drive against domestic unaccounted money. We will soon bring out a legislation on public procurement.

To strengthen international efforts, all countries should implement the Common Reporting Standard based on Automatic Exchange of Tax Information.

G20 must continue to give priority on combating corruption.

I welcome the promotion of transparency and integrity in the private sector.

We need greater international cooperation for return of illicit money to the country of origin. We must address the barriers of excessive banking secrecy, and complex legal and regulatory frameworks.

We must also deepen cooperation against terrorism financing, including through targeted financial sanctions and more effective counter-terrorism financing tools.

Country specific reports of FATF should be shared and FATF should work out a mechanism to work with deficient countries.

Thank you!