Advertisement

How Can Financial Institutions Help Out?

  • Sharit K. Bhowmik
  • Debdulal Saha
Chapter
Part of the India Studies in Business and Economics book series (ISBE)

Abstract

Financial inclusion is an important facilitator in achieving inclusive growth for the economy. The RBI—inspired by success of microcredit programmes in developing countries in meeting credit needs as well as empowering the poor—took up several steps in the direction of achieving financial inclusion in India. The main identified problems associated with financial inclusion are inadequacy of bank branches and the consequent inability of people to open bank accounts or carry out transaction (RBI 2006). RBI has viewed the banking services of formal financial institutions as a public good and recommended all commercial banks to open at least 25 % of their branches in rural or unbanked areas as a part of their Annual Branch Expansion Plan (ABEP) (ibid). Banks were also encouraged to appoint business correspondents (BC) or facilitators of customer interface. In the budget speech of the Union Finance Minister for the year 2012–2013, banks were advised to construct brick-and-mortar structures at present base branch and BC locations and to have core banking solutions and minimum infrastructures required to carry out large customer transactions (RBI 2012).

Keywords

Interest Rate Trade Union Urban Poor Financial Inclusion Street Vendor 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Chakrabarty, K. C. (2012, September). The first mile walk into financial inclusion – Thinking differently. RBI Monthly Bulletin, 1585–1588.Google Scholar
  2. Dev, S. M. (2006). Financial inclusion: Issues and challenges. Economic and Political Weekly, 41(41), 4310–4313.Google Scholar
  3. Gangopadhayay, S. (2008). How can technology facilitate financial inclusion in India? A discussion paper. Review of Market Integration, 1(2), 223–256.CrossRefGoogle Scholar
  4. IMF (International Monetary Fund). (2010). Innovative financial inclusion. Available on http://www.microfinancegateway.org/gm/document1.9.44743/Innovative_Financial_Inclusion.pdf. Accessed in June 2012.
  5. Rangarajan, C. (2008). Report of the Committee on Financial inclusion. Available on http://www.nabard.org/pdf/report_financial/full%20Report.pdf. Accessed in September 2010.
  6. Reserve Bank of India (RBI). (2012). Credit delivery and financial inclusion (Annual Report). Mumbai: RBI. Available on http://rbidocs.rbi.org.in/rdocs/AnnualReport/PDFs/IVCDFIN230812.pdf. Accessed on 15 September 2012.

Copyright information

© Springer India 2013

Authors and Affiliations

  • Sharit K. Bhowmik
    • 1
  • Debdulal Saha
    • 2
  1. 1.Tata Institute of Social SciencesMumbaiIndia
  2. 2.Tata Institute of Social SciencesGuwahatiIndia

Personalised recommendations