G20 Summit: PM Modi talks about effective financial governance

Modi met US President Barack Obama earlier in the morning on Monday, and later met UK Prime Minister Theresa May for their first bilateral talks. 

G20 Summit: PM Modi talks about effective financial governance
While speaking at the summit, Modi also pitched for the breaking down of the "web" of complex international regulations. Photo: PTI
By ZeeBiz WebTeam
Updated: Mon, Sep 05, 2016
10:20 am
Mumbai , ZeeBiz WebDesk
RELATED NEWS
Manmohan Singh flays Modi govt, says jobless growth, rural indebtedness have made youths restless Manmohan Singh flays Modi govt, says jobless growth, rural indebtedness have made youths restless
Patna Metro Rail Project gets new push: Check routes, year of completion, other details Patna Metro Rail Project gets new push: Check routes, year of completion, other details
PM Modi to inaugurate slew of projects in Jharkhand today PM Modi to inaugurate slew of projects in Jharkhand today
NaMo app achieves this success since its launch; Check how it functions NaMo app achieves this success since its launch; Check how it functions
Vande Bharat Express suffers breakdown, fails to deliver on the promise Vande Bharat Express suffers breakdown, fails to deliver on the promise

On the second day of the G20 Summit, Prime Minister Narendra Modi said that fighting corruption, black money, and tax-evasion were the central key to effective financial governance.

Vikas Swarup, Spokesperson of the Ministry of External Affairs, tweeted that Modi had emphasized on the need to act on eliminating safe havens for economic offenders, and tracking down and unconditionally extradite money launderers and tax offenders.

Modi, who arrived in Hangzhou on Saturday to attend the G20 Summit from his visit to Vietnam, said, G20's efforts should be for zero tolerance for corruption and black money, zero admin, policy and treaty loopholes, and zero barriers, and full commitment to action. 

While speaking at the summit, Modi also pitched for the breaking down of the "web" of complex international regulations and excessive banking secrecy that hide the corrupt and their deeds. 

Highlighting why a stable global economic and financial system is imperative for growth, Modi called for 'four for stable global financial system' plan:

1. "To promote inclusive and sustainable growth, it is essential that capital requirements under the new regulations do not raise the cost of finance.

2. Important mechanisms like financial stability board (FSB) should stick to their core mandate.

3. International Monetary Fund (IMF) should remain a quota based institution and not depend on borrowed resources. He also emphasised on long delayed 15th General Review of Quotas must be completed by 2017 Annual Meetings.

4. The global financial safety net (GSFN) needs further strengthening.

"We need a regular dialogue between the IMF, Regional Financial Arrangements and Bilateral Swap Arrangements," Modi added.

While ending his speech, Modi said, "Need energy to support development needs. Balance mix of nuclear, renewable energy and fossil fuels at core of our policy."

Modi met US President Barack Obama earlier in the morning on Monday, and later met UK Prime Minister Theresa May for their first bilateral talks.