New Delhi, May 16 -- Financial systems must remain connected to the real economy and the lives of ordinary citizens, Principal Secretary to Prime Minister Narendra Modi, PK Mishra, cautioned on Saturday while highlighting the risks posed by excessive speculation and instability in financial markets.

Addressing the 20th convocation of the National Institute of Bank Management (NIBM) in Pune, Mishra said, "Financial systems cannot become disconnected from the real economy and lives of ordinary citizens. Excessive speculation, irresponsible lending, unsustainable leverage and instability in financial markets can create disruptions."

At the same time, he underlined how India's digital public infrastructure has transformed financial inclusio...