Day: July 7, 2025

Indonesia Joins BRICS: PM Modi’s Vision for Global South at 17th BRICS Summit

Prime Minister Narendra Modi was present at the 17th BRICS Summit, Rio De Janeiro, Brazil on 6th -7th July, 2025. The summit witnessed the official inclusion of Indonesia in the membership of BRICS; a very powerful extension of influence of the block. The podium was used by PM Modi to promote the need to reform global governance with immediate effect, a united response to terrorism and collaboration in new age technologies, further uniting India to the empowerment of the Global South.

Indonesia was granted full membership of BRICS in the 17th Summit held by PM Modi, who emphasized the expansion of BRICS under the leadership of India. He used his speeches to focus on the need to reform outdated global institutions, his fight against terror with no double standards, and promotion of responsible AI, all relevant to India as it takes over the BRICS chairmanship.

Key Details:

Diplomatic Expansion:

  • Indonesia’s Induction: The inclusion of Indonesia as the 11 th full member of BRICS increased the geopolitical scope of the bloc and officially reinforced the mission of BRICS to give voice to the Global South.

  • India’s Chairmanship: It is scheduled that India would become BRICS chair in 2026, and the position of Modi at the summit, made India one of the key leading the changing agenda of the group

Global Governance Reform:

  • Need for Modernization: According to PM Modi, international organizations such as the UN Security Council, the IMV, the World Bank, and the global Trade Organization are representative of the 20th century power balance, and it is unable to address the realities of the 21st century.

  • Call for Multipolarity: He reaffirmed Indian demand for a just, non-discriminatory and multi-polar world empire and more say to the developing countries.

Strong Position Against Terrorism:

  • Condemnation of Attacks: With the reference of April, 2025 Pahalgam terror attack, Modi termed terrorism as a greater threat to humanity.

  • Unified Action: Encouraged the BRICS countries to consider uniform principled sanctions on terrorists criticizing taking selective actions out of convenience and political expediency.

  • No Silent Consent: Modi cautioned that one should not provide tacit justification of terrorism in pursuit of politics and strategic goals.

Proposals to Strengthen BRICS:

  1. Demand-driven Lending: Requested the BRICS New Development Bank to give priority to sustainable demand projects.

  2. Science Repository: Suggested the creation of BRICS Science and Research Repository to be of service to Global South countries.

  3. Critical Minerals: Insisted on stable and defensible supply chains of critical minerals.

  4. Responsible AI: Promoted balanced regulation of AI that leads to creation and solutions to the question of abuse.

Strengthening India-Indonesia Ties:

  • The relations between PM Modi and Indonesian President Prabowo Subianto strengthened the strategic interaction and both parties reasserted their earlier cooperation in multilateral forums.

Summit Participation:

  • This summit had a record-breaking participation: 11 full BRICS members, 9 partner countries, 8 invitee countries and 7 international organizations, all demonstrating an increase in the influence of BRICS.

Conclusion

Indonesia as a full BRICS member is an indication of the blocs devotion to lifting the voices of the Global South and to the fact that the world was becoming more inclusive and multipolar. India is proactive in its leadership with its assertive interventions on reforming world governance, principled anti-terrorism, and being responsible in AI. With India itself gearing up to chair BRICS in 2026, they will frame the country in remaking world governance, though any such changes will have to negotiate geopolitical intricacies both within and outside BRICS.

Indian Bank and PNB Waive Minimum Balance Charges to Promote Financial Inclusion

Indian Bank and Punjab National Bank (PNB) have reported withdrawing penal charges that were imposed on non-maintenance of minimum balance in savings accounts. This will be a step toward financial inclusion, as this would make banking available and affordable to every segment of society. Furthermore, the Indian Bank has lowered its Marginal Cost of Funds Based Lending Rate (MCLR), and that will enable those who are taking loans at an interest at minimal rates.

Summary:

PNB and Indian Bank have removed the minimum balance charges on savings accounts in order to facilitate financial inclusion, especially for underserved communities. Indian Bank was also among the banks that decreased MCLR by 5 basis points and cut down its interest rates. This is the next move of other banks such as Canara Bank.

Key Details:

Indian Bank Initiative:

  • Indian Bank will stop charging a minimum balance on any savings account, effective July 7, 2025.

  • This management action should increase the accessibility of banking, especially by students, older persons, small entrepreneurs, and rural clients.

  • Indian Bank also declared a one-year MCLR cut by 5 basis points, to 9 % with effect from July 3, 2025. This will be an advantage to the borrowers since the interest on loans will be reduced.

Punjab National Bank (PNB):

  • PNB eliminated penalty charges on non-maintenance of Minimum Average Balance (MAB) in all savings accounts, with effect from July 1, 2025.

  • The decision by PNB is specifically tailored to serve priority groups, including women, farmers, and low-income families.

Industry Trend:

  • Punjab National Bank (PNB) made a move similar to Canara Bank in making MAB penalties. It is part of the overall trend perpetrated by public sector banks, avoiding financial inclusion.

  • It is projected that the changes will relieve the financial burden on the customers and spur more customers to join the formal banking system.

Targeted Beneficiaries:

  • The waiver will go especially to the members of underserved communities, who, in the past, did not have access to formal banking due to the minimum balance requirements.

Conclusion

The Indian Bank and PNB have taken a major stride to push the agenda of financial inclusion by waiving minimum balance charges. This effort will enable different lowly targeted groups of society such as rural communities plus lower-income families to get access to banking facilities without burdening themselves concerning the balance maintenance problem. These actions, together with the MCLR cutdown by the Indian Bank, characterize a wider trend of reducing the price of banking services in India.

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