Professional Documents
Culture Documents
Financial Inclusion Financial Inclusion: Dr. K.C. Chakrabarty Dr. K.C. Chakrabarty
Financial Inclusion Financial Inclusion: Dr. K.C. Chakrabarty Dr. K.C. Chakrabarty
Co-operative Movement Setting up of State Bank of India Nationalisation of banks Lead Bank Scheme RRBs Service Area Approach Self Help Groups
--- Still We Failed!
--- Why?
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Absence of Banking Technology Absence of Reach and Coverage Absence of Viable Delivery Mechanism Not having a Business Model Rich have no compassion for poor
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Focus on Inclusive Growth Banking Technology has arrived Realisation that Poor is bankable
The Indian Way- Multi Agency Approach WayFinancial Stability and Development Council (FSDC) mandated to focus on Financial y Inclusion and Financial Literacy Financial Sector Regulators including the Reserve Bank committed to FI Mission Financial Inclusion is a mammoth task- financial services through mainstream financial institutions to 6 lakh villages
It I is possible !!!!! bl
Eco-System is in place!!!!!
Approach adopted by RBI- Some Specifics RBIAchieving planned, sustained and structured financial i l i fi i l inclusion. Technology- To be fixed first.
All Bank branches must be on Core Banking Solution (CBS). All Regional Rural Banks (RRBs) to be on CBS by September 2011.
Multi-channel approach (Handheld devices, mobiles, cards, Micro-ATMs, Branches, Kiosks, etc.) ) Front-end devices transactions must seamlessly integrated with the banks CBS. y g be
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Approach adopted by RBI- Some Specifics - 3 RBIAvailability of Banking Services means availability of a Minimum of Four Products: A basic No-Frills banking account* with Overdraft Facility. y A Remittance Product for Electronic Benefit Transfer and other remittances. A Pure Savings Product ideally a recurring or a variable recurring deposit. Entrepreneurial Credit such as General Credit Card, Kisan Credit Card.
* (A No-Frills Account is one for which no minimum balance is insisted upon and for which there are no service charges for not maintaining the minimum balance.)
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Financial Literacy y
Demand Side
Financial Literacy & Credit Counseling Centres Credit Ab C d Absorption Capacity C Knowledge of products Need f N d for total products l d & services
&
Financial Inclusion
Supply Side
Financial Markets , Banks & Services Appropriate D A Design of f products & services
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Mar-10 33042 21499 33158 100 54757 495.53 4895.19 195.24 107518.8 6.37 813.85 813 85
Mar-11 58361 22684 76801 355 99840 743.90 6565.68 224.89 143862.2 9.50 1307.76 1307 76
Mar 12Target 125988 24618 197523 1361 223502 1096.24 9311.02 322.59 152113.6 46.89 3229.12 3229 12
Mar 13Target 187972 25694 320441 2177 348312 1533.15 11323.26 407.33 179254.8 81.13 5669.73 5669 73
Somewhat Reassuring !!
Can We Do ?
Thank you.
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