Thursday, May 2, 2013

Is the observation from RBI Dy governor OK?

This statement of Dy Governor from RBI is uncalled for as it is tantamount to admitting failure of RBI in the eyes of public and State Govt Authorities.Chit funds come under the purview of State Govts in terms of Chit Funds Act 1982 and RBI has absolutely no role in sponsoring, running, regulating or supervising Chit funds. The greed of politicians and some unscrupulous businessmen exploit the sentiments, illiteracy and poverty of the masses and drag people to chit funds.Financial Inclusion has not taken off the way it has been planned and desired is a fact and for that the banks and the attitude of human resources manning the banks have to be blamed. Even when well off and educated customers are badly treated by bank officials is an accepted reality, the question of entertaining poor and illiterate masses by such bank officials cannot arise. The failure of Governance system in the country in general and by the state govt in particular has caused the Saradha Scam and accusing the entire formal system otherwise well regulated and supervised by the regular has not come out of conviction but to curry favour from somewhere. This sort of irresponsible statements need to be nipped in the bud itself. It can even erode the confidence in the formal financial system which is not in good taste.

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