Administration & Management

It has always been nice to hear the Central Banker of the country talking and favouring financial inclusion despite of tremendous pressure in favour of financial consolidation. Though, this does not down size the importance of Financial Consolidation, looking into type of competition the banks or rather banking sector in locked into.  The prospective change in policy, when it comes to granting license to Banks to operate, towards asking them to commit themselves to Governments’ social agenda of Financial Inclusion is again an august step.

Four decades succeeding the bank nationalization, have just succeeded in provide access to banking services to barely 30,000 out of 6 Lakh habitations. This clearly means the huge task that banks still have to complete. Looking into achievements of banks one may infer as if the banks were just paying lip service to governments agenda of financial inclusion.

Central Bank, should perhaps consider asking new bankers to have their headquarters located in one of 570000 habitations, which are still facing financial exclusion. As this will automatically initiate what is called as seepage economy at those places and in process will gradually attract more bankers and other stakeholders in the development process there.

Due credit goes to the backing given by Prime Minister Manmohan Singh to the Central Banker of the country, which forced even union finance ministry to a bit down on its focus towards financial consolidation. Though finance ministry, still wants to stick to financial consolidation, as Union Finance Minister Pranab Mukherjee could not abstain himself from containing in Financial Bill 2011-12 presented by him in the Parliament on February 28, 2011.

Always Yours–As Usual—Saurabh Singh