'Know your districts well' to deepen financial inclusion: RBI DG to bankers

Having achieved success in improving access to banking services, there is a need to improve the usage of facilities, Reserve Bank Deputy Governor Swaminathan J has said.

The career commercial banker-turned-central banker exhorted bank officials to know their districts very well in the pursuit of the aim.

"India has made significant strides in enhancing 'access' to banking and financial services, reaching even the most remote areas. However, there is still considerable ground to cover in deepening financial inclusion. This requires greater focus on promoting 'usage' and improving the 'quality' of services," he said.

Addressing the Conference of Lead District Managers and District Development Managers in Hubballi last Friday, Swaminathan said it is imperative for bankers to follow the maxim of "know your district well" by having a deep understanding.

The district profiles should include detailed demographic information, agricultural trends, banking penetration and activities, industrial profiles, and the various performance metrics under the Annual Credit Plans, he said.

Bankers should use data analytics and field surveys to gain insights into economic activities, local credit needs, and barriers to credit access, he added.

"A holistic understanding of your district will enable you to identify gaps in financial inclusion, assess the credit needs of different sectors, and design targeted strategies for intervention. It will also help you to identify the root causes of the various issues observed in your districts," he told the bankers.

The sound understanding of a district by a banker should lead to a granular bottom-up approach on creating a credit plan, he said.

"By staying attuned to your districts, you can provide invaluable feedback to the SLBCs, enabling the formulation of targeted and effective credit plans, and fostering sustainable economic growth and development," he said.

Swaminathan also said that 354 districts are now digitally enabled and ten states, including Karnataka and six Union Territories, have achieved 100 per cent coverage of districts under an initiative to make every district digitally enabled.