This refers to the editorial “Licence to be cautious” (July 4). If the Reserve Bank of India’s real motive is financial inclusion, then the need for inviting new applicants is irrational. We have an almost saturated banking industry. New allotments would not solve the problem of “financial inclusion” in totality, as new organisations will take time to settle, including facing the greater challenge of rural customers.
On the contrary, “Post Bank of India” with its deep roots in the country can be asked to partner one of the existing banks having clear ambitions to multiply money on rural soil. This would keep the wheel moving with less time to stabilise and minimal resources.
Faith and professionalism are a critical mix that “financial inclusion” requires and that needs to be served best with experienced bankers rather than freshers.
Prem Agarwal Mumbai
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