SLBCs can boost financial inclusion if synergy with government improves: RBI DG
“I urge all stakeholders to continue to work together, leverage the strengths of each sector and harness the power of technology to create a financially inclusive society,” RBI DG said. Photo: RBI
Reserve Bank Deputy Governor Swaminathan J has said that State Level Bankers’ Committees (SLBC) can play a more effective role in financial inclusion through better coordination with government and NGOs in credit planning and promoting digital financial literacy.
Considering that the role of SLBCs in promoting inclusive and sustainable growth is crucial and multi-faceted, he said, this can make significant progress in bridging the gap between financial services and the underserved populations.
“By focusing on effective coordination with government and NGOs, taking a scientific approach to credit planning and emphasizing digital financial literacy, SLBCs can create a more inclusive financial ecosystem,” he said at the Conference of Convenors of SLBCs in Pune on June 19.
“As we move forward, it is essential to monitor and measure the tangible results of our efforts to ensure that the benefits of financial inclusion reach every corner of our country,” he said.
By tailoring initiatives to local conditions and needs, and by promoting a culture of financial literacy, he believes it is necessary to enable individuals to actively participate in the formal economy, thus contributing to the broader goal of inclusive and sustainable economic development, which is essential. for a Viksit Bharat 2047.
“I urge all stakeholders to continue working together, leveraging the strengths of each sector and harnessing the power of technology to create a financially inclusive society,” he said.
He said part of RBI’s ambitious centenary goals, also known as RBI@100, include deepening financial inclusion and increasing credit availability.
Deepening financial inclusion is not just about increasing the number of bank accounts, but about ensuring that every individual has access to a comprehensive range of financial services tailored to his or her needs, he said.
This includes savings, credit, insurance and investment products that can improve their economic well-being, he said.
Increasing the availability of credit, especially to underserved sectors such as micro, small and medium enterprises (MSMEs), agriculture and marginalized communities, is critical to promoting inclusive growth and sustainable development, he added.
Even though this appears to be part of the objectives of RBI@100, it is in fact the objectives of every stakeholder in the financial ecosystem that are in line with the national interest, he said. He added that achieving these ambitions will require a collective effort involving government agencies, non-government organizations, financial institutions and the banking community.
The role of SLBCs in this journey is crucial as they are the linchpin that connects various stakeholders and ensures that the financial system works seamlessly at the grassroots level, he added.
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First print: June 24, 2024 | 5:07 PM IST