The Hindu Business Line : Smart cards under financial inclusion by August: RBI

Bangalore, May 14 Reserve Bank of India has said that the electronic benefits scheme under financial inclusion would be completed in the State by August this year.

Speaking to reporters here today, the RBI Governor, Dr D. Subbarao, said, “The project for issue of biometric cards would be completed by August 15.” A pilot project for issuing smart cards in three regions of the State – Chitradurga, Bellary and Gulbarga – was not successful, he said.

Dr Subbarao was in Bangalore to chair the RBI’s board meeting. He also met the Chief Minister, Mr B.S. Yeddyurappa, and State Government officials. At least 8,000 villages have been identified in the State for opening fresh no-frill accounts. These accounts can be opened on the basis of any photo identity card, he said. At least 50 per cent of the accounts will become operational by the end of this financial year, he added.

According to him, claims of full financial inclusion by Karnataka were found “not true” after putting them through the evaluation test. Though Karnataka had fared better than some other States, the no-frill accounts have to be made operational for fulfilling the criteria of financial inclusion, Dr Subbarao said.

credit restructuring

The RBI has taken up the issue of credit restructuring of the micro, small and medium enterprises sector. “We will give a hearing to the SME association at a special State Level Bankers Committee meeting soon,” he said. Banks, he added, have already received applications for credit restructuring that was likely to be taken up for consideration by June this year.

Besides, he said, the State Government had complained that many of the banks were reluctant to extend educational loans. Dr Subbarao said that was largely because many of the banks were unaware of the subsidy extended by the State Government. This issue would also be taken up at the next meeting of the SLBC.

Dr Subbarao said that it is the platinum jubilee year of the RBI. The bank intends to take up a pilot project on financial literacy in some schools and colleges in the State. The bank is in the process of identifying the institutions for the purpose in consultation with the State Government, he added.

More Stories on : RBI & Other Central Banks | Karnataka

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