What next after financial inclusion?

What next after financial inclusion?: The Centre has addressed supply-side issues of financial inclusion, but building financial capability is equally important...

Challenges ahead after financial inclusion

This refers to the well-researched article “What next after financial inclusion” by
Jayshree Venkatesan (The Hindu Business Line, April 20, 2016). As rightly mentioned the several initiatives by government, RBI and banks to bring more people under the banking-fold, to increase the outreach of financial institutions to make tailor-made financial services available to those new to banking and in a way per force to bring a
section of population which was not trusting mainstream banking institutions
during the last 18 months are praise-worthy. The fact that over 60 per cent of
14 crore accounts opened under PMJDY, though a matter of concern, should not
stop further measures to bring more people into the banking net.
The initial enthusiasm of banks to show results might have resulted in opening some
accounts which the clientele may not operate at any time. For example, a second
account opened in the same family or some accounts opened under persuasion may
become inoperative soon. Perhaps, like norms for NPA, RBI may consider
transparent norms for transferring accounts to ‘inoperative’ category, if the
accounts remain dormant and do not serve the purpose for which they were
The ‘target’ of adding 80 crore new bank accounts in India during the 5 years
ending 2020 may be ambitious, considering the fact that many who may prefer
accounts with MFIs and cooperatives may still remain outside the mainstream
commercial banking fold. But, the challenge for India will continue to be the
number of families remaining poor and unable to save anything from their daily
earnings. Plainly put, we are back to square one, where we do not have a
respectable and acceptable prices, wages and income policy.

M G Warrier


Unknown said…
I have also seen the report in BL. Your comments / reactions are excellent
Unknown said…
It was a good annexure to the nice article in BL
Thanks, Nandakumar
M G Warrier

Popular posts from this blog


The King of Ragas: Sankarabharanam