Thursday, December 31, 2015

Push Financial Inclusion, Fast

Apropos your editorial on Financial Inclusion from RBI (ET dated 31/12/2015), the Mohanti Committee on Financial Inclusion has done its best to make the Financial Inclusion  a reality by bringing families including girl children particularly from the rural and agricultural segment under some institution or other engaged in the field of Finance. The highlight of the report is perhaps the thrust given to link Aadhar Card with the subsidy distribution  through the fast spreading mobile usage with an intention to cut graft, reach of cash subsidy to all without leakage and loss of time.  As rightly observed the approach to   enhance the much needed interconnectedness of popular access to formal Finance with the Institutions and practices relating to the real economy, Land records, agricultural subsidy and the tax treatment of securitization vehicles is really commendable. The coordinated approach from all institutions engaged in Financial Inclusion utilizing the services of Business correspondents along with a thrust to improve Financial Literacy would definitely go a long way in achieving the inclusive growth and improving the rural environment to attract investment, agricultural production and distribution of wealth in an equitable manner. As is said the taste of pudding is in eating the success of Financial Inclusion depends on the implementation of the Committee’s recommendations in letter and spirit  which essentially calls for a mindset to fulfill the aspirations of poor segment of the population.

T V Gopalakrihnan  

(Modified version of this letter is published in ET dated 1/1/2016 )      

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