The Hindu Business Line : ‘Poor still left out of organised financial system’

Hyderabad, July 3 The Chairman, Economic Advisory Council to the Prime Minister, Dr C. Rangarajan, has underlined the need to modify the country’s credit and financial services delivery system to achieve greater financial inclusion.

This, he said, called for institutional changes, and innovative ideas to link bank branches with millions of farm households and other approaches will have to be thought off.

Speaking at the inauguration of SuUti Tech Options here, he said the financial system in the country has grown rapidly in the last three decades and the functional and geographical coverage of the system is truly impressive. Data shows that there is exclusion and the poorest sections of the society have not been able to access adequately financial services from the organised financial system.

IT for inclusive growth

Speaking on financial inclusion and technology, Dr Rangarajan said access to finance by the poor and vulnerable groups is a prerequisite for poverty reduction and social cohesion. IT becomes an integral part in efforts to bring about inclusive growth.

In the task of making banking services available to everyone, technology had an important role to play in creation of channels beyond branch networks. The RBI has set up an Advisory Group for IT Enabled Financial Inclusion to facilitate development of information technology solutions for delivery of banking services.

The group is set to prescribe standards essential for technology solutions. Essential ingredients include the issue of smart card to the client in the village on which all transactions are recorded, a handheld terminal with the business correspondent at the village level, and a central processor unit linking smart cards and terminals with the bank.

More Stories on : Economy | Financial Services

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page