Letters: The micro credit solution

This refers to the editorial "A complex chain" (August 20). The financial inclusion drive to deliver the intended and expected outcome of inclusive growth need not be credit-led. The poor will not have enough money to make transactions through bank accounts - rendering them inoperative. Opening and maintaining such unremunerative deposit accounts make the business non-viable for banks. Unless a concerted effort is made to increase the income-generating ability of the poor, the financial inclusion drive will not lead to any worthwhile outcome. The ability of the poor to run micro ventures to produce goods and services is not spread widely. To kick-start the process, they need to be provided affordable and hassle-free micro credit and hand-holding. The poor don't have an inferior track record of loan repayment compared to big enterprises. Therefore, to make the business model more viable, banks should integrate micro credit as an essential component of their financial inclusion drive.

Biplab Chakraborty Kolkata

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