Money & Banking

Banks yet to reach backward class in rural areas: RBI chief

Our Bureau Chennai | Updated on March 12, 2018

The Reserve Bank of India Governor, Dr D. Subbarao, at Indian Overseas Bank's Platinum Jubilee Commemorative Oration in Chennai on Wednesday. -- R. Ravindran.   -  THE HINDU

The outreach programme of the Reserve Bank of India is yet to make any big impact on the target audience.

The RBI Governor, Mr D. Subbarao, in his oration at IOB’s Platinum Jubilee function, said, “The actual benefits of the programme, aimed at financial inclusion, have not reached the backward communities in villages, which were the real target,” he said.

There have been a lot of complaints that most of the Banking Correspondents are not well informed about the system and they have not been trained properly. As a result, “there is no trust existing between the customers and the BCs, for now,” he said.

He added that there was a lack of awareness among the people about the grievances and redressal mechanism of the banking industry too.

He also noted that there were a disappointingly large number of cases of bank branches with low customer footfalls, as business correspondents drifted off after a few months. ‘No frills’ accounts remained largely inoperative.

Banks should look upon financial inclusion not as an obligation but as an opportunity to build a “fortune at the bottom of the pyramid”.

Published on July 05, 2012

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