Financial inclusion must make business sense: Y M Deosthalee

Nothing wrong with intermediaries making some money if it is serving the larger cause, he says

At a time when several of mutual fund distributors and independent financial advisors (IFAs) continue to find it difficult to sell MF products, Y M Deosthalee, chairman & managing director of L&T Finance Holdings said that there should be an enabling environment for financial inclusion where it must make some business sense.

There is nothing wrong if intermediaries make some money if it is serving the larger cause, he said today at MF summit organised by CII.

"Government and regulators have to be facilitator and supervisor, " said Deosthalee. His concerns have come at a time when banks are struggling to have deposits and most of the savings are either heading towards gold or real estate.

"Whether it is mutual funds, insurance or banks, there has to be
a win-win situation. Those who are providing such services should also make reasonable money," he added.

He also threw ideas of having a tax free financial inclusion for mutual funds making it a compulsory investments with some assured returns.