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Hyderabad, Aug. 14 The Reserve Bank of India plans to go beyond setting quantitative targets for banks on financial inclusion, its Governor, Dr D. Subbarao, said.

“Some States said they had achieved 100 per cent financial inclusion. But during inspections, we have found that only 50 per cent of the people have bank accounts, of which only 10 per cent were being operated,” Dr Subbarao said, while responding to a query during a panel discussion on ‘Challenges for the central banks’ organised by the RBI here on Friday.

Improving the access of quality and quantum of financial inclusion was a big challenge, the Governor said.

On a request to allow the non-banking finance companies (NBFCs) and micro-finance institutions to collect micro deposits, the Governor said he could not give any definite commitment due to some issues.

Dr C. Rangarajan, Chairman of the Prime Minister’s Economic Advisory Council, said the RBI should look into the recommendations submitted to it (by a panel headed by him), on the role of business correspondents to be employed by banks in rural areas for financial inclusion.

“That is the only way in which rural branches of banks can reach out to people due to practical difficulties in brick and mortar expansion of branch network,” he added.

More Stories on : Financial Services | States | RBI & Other Central Banks

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