Financial Inclusion (FI) has been RBI’s policy priority
FI seen as a tool for inclusive growth ensuring equality of opportunity for all
The focus has been in facilitating the process that a range of appropriate financial products and services is available to underprivileged sections at an affordable cost.
Financial Inclusion – Phases & Steps Taken
Steps Taken
Co-operative Movement
Setting up of State Bank of India
Nationalisation of banks
Lead Bank Scheme
RRBs
Service Area Approach
Self Help Groups
Process: Phases
1) 1950-70: Consolidation of the
Banking sector & Facilitation
of Industry and Trade
2) 1970-90: Focus on channelling of credit to neglected sectors and weaker sections
3) 1990-2005: Focus on Strengthening the financial institutions as part of financial sector reforms
4)2005 onwards: Financial Inclusion was explicitly made as a policy objective
Steps Taken by RBI- Credit Delivery Focus
From 1994-95, public sector banks in India have been formulating Special Agricultural Credit Plans (SACP) with a view to achieve distinct and marked improvement in credit flow to agriculture
The Kisan Credit Card (KCC) scheme was introduced from 1998-99
Credit innovations like micro finance have also evolved as socially significant and commercially attractive models of credit delivery
The early 1990s saw the emergence of the Self Help Group concept –
The pilot programme started by NABARD in 1992 and actively supported by the Reserve Bank saw the banks taking a key interest in promoting the programme
The SHG- Bank linkage programme has so far become the largest microfinance programme in the country
As on March 31, 2008, a total of 3.6 million SHGs with a total outstanding bank loan of Rs.17,000 crore were credit linked with the banks
As on March 31, 2008, a total of 5.0 million SHGs were having savings bank accounts with the banking system of which the commercial banks had the maximum share (56.0 per cent) followed by the RRBs (28.0 per cent) and cooperative banks (16.0 per cent
No comments:
Post a Comment