Financial inclusion should be a bank-led model: RBI

A top official of the Reserve Bank of India (RBI) said banks are in a better position as compared with other entities to lead the financial inclusion goal in India, though mobile companies have been allowed to partner them.

“Our experience shows that the goal of financial inclusion is better served through mainstream banking institutions as only they have the ability to offer the suite of products required to bring in the effective or meaningful financial inclusion,” said RBI Deputy Governor K C Chakrabarty in a speech delivered in Washington, DC on Sunday. The speech was released on the central bank’s website on Tuesday.

Under the three-year financial inclusion drive, banks have covered all villages with population more than 2,000 by March 2012 and are working towards reaching out to all villages in a time-bound manner.

“The focus is also on the volume of transactions in the new accounts opened as a part of the financial inclusion drive,” said Chakrabarty.