Appropriate
delivery models are vital for achieving financial inclusion, according to Dr K.
C. Chakrabarty, Deputy Governor, Reserve Bank of India.
Speaking
on developing a framework for financial inclusion at a national seminar here on
Thursday, he said financial inclusion had become fashionable of late. “But this
fashion has to become a passion,” he added.
The
seminar was organised by Crux Management Services in association with State Bank
of India's Institute of Rural Development and Nabard.
Stating
that banks had “great reluctance” to open brick and mortar branches in
un-banked area, he said a combination of traditional branch model and business
correspondent model should be adopted. Banks should open intermediary
structures between base branch and customer locations.
TRANSACTIONS IN ACCOUNTS
“The
central role in financial inclusion has to be played by banks, he said, adding
that they needed to focus on transactions in accounts opened under financial
inclusion. Only banks can offer the entire suite of products required to usher
in meaningful financial inclusion.
“They
also need to be careful in collaborating with other agencies such as
microfinance institutions and non-banking finance companies in financial
inclusion because they can only play only supportive role,” Dr Chakrabarty
said.
In
the recent policy, the RBI had asked banks to offer a basic savings account
with a reasonable minimum balance norm.
The
financial inclusion plans were being prepared by banks with board approvals
since 2010 under the directions from the apex bank.
“The
three-year horizon up to March 2013 has been given to banks. We are closely
monitoring the progress,” he added.
UNIVERSAL BANKING
The
target of covering villages with population of above 2,000 was achieved by
March 2012.
“Now,
we need to work towards universal banking access,” he said.
Financial
inclusion was part of trinity along with consumer protection and financial
literacy which would ensure financial stability.
Dr
Chakrabarty had also asked the banks to ensure transparency in pricing of
financial products and rationalisation of charges.
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