Reserve Bank of India (RBI) has constituted a
committee to prepare a 5 year action plan to spread the reach of financial
services across country to unbanked population. Financial inclusion or
inclusive financing is the delivery of financial services at affordable costs
to sections of disadvantaged and low-income segments of society, in contrast to
financial exclusion where those services are not available or affordable. The
committee will be headed by RBI executive director Deepak Mohanty and comprise
total of 14 members Terms of References of the committee. In this regard it
will take into account the recommendations made by various committees set up
earlier.
Purpose: Work out a medium-term or five-year measurable
action plan for financial inclusion. Suggest a monitorable medium-term action
plan for financial inclusion. It will cover various components including
payments, credit, deposit, social security transfers, pension and insurance.
Articulate the underlying institutional and policy framework for financial
inclusion. Cover financial literacy and consumer protection, as well as
delivery mechanism of financial inclusion. For this the committee will
encompass both households and small businesses, with more emphasis on rural
inclusion including group-based credit delivery mechanisms. It is expected that
the Committee is expected to submit its report in four months from the date of
its first meeting. It should be noted that, for promoting financial inclusion,
Union government had launched Pradhan Mantri Jan Dhan initiative (PMJDY) in
August 2014.
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