FOCUS ON TRANSACTIONS IN NO FRILLS ACCOUNTS: RBI

Banks need to focus on transactions in accounts opened under financial inclusion, according to Dr K.C. Chakrabarty, Deputy Governor of RBI.

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 passion,’’ he said.

Stating that banks had “great reluctance’’ to open brick and mortar branches in unbanked area, he said a combination of traditional branch model and business correspondent model should be adopted.

“The central role in financial inclusion had to be played by banks,’’ he said.

“They also need to be careful in collaborating with other agencies like MFIs and NBFCs in financial inclusion because they can only play only supportive role,’’  Dr Chakrabarty said.

SOURCE: http://www.thehindubusinessline.com/industry-and-economy/banking/article3355688.ece