Mumbai: Technology is a key parameter that is going to propel financial inclusion in the country. Speaking at a discussion on the subject ‘Banking for the Billions’ at India’s Best Bank Awards 2008 function organised by The Financial Express in Mumbai on Thursday, the panelists pagreed that financial inclusion at low cost cannot be achieved in the country without taking help of technology. Excerpts from the discussion.
State Bank of India chairman OP Bhatt: “Financial inclusion is an issue even for the advanced countries of the world. Banking for the billions is a major issue even for rich nations including US, and a rich country like United Kingdom has earmarked 120 million pounds as financial inclusion fund.”
ICICI joint managing director and CFO Chanda Kochhar: “The biggest challenge in promoting rural banking is that although number of transaction are very high, the transaction cost has to be kept low. It is necessary to build viable business models to promote financial inclusion.”
Punjab National Bank chairman DR KC Chakrabarty: “Inclusive growth is possible only when we can offer bank accounts to maximum number of people across rural belts of the country. Banking for billions is unviable and unmanageable without taking help of technology.”
NABARD chairman UC Sarangi: “The role of self help and micro finance groups is very important in promoting financial inclusion in the country.” Citibank country head Sanjay Nayyar: “I would stress on the use of technology towards operating and controlling the cost of access to bank accounts in a bid to propel financial inclusion in India across rural areas.”
Indian Bank chairman and managing director Sundara Rajan: “Much more needs to be done in the area of counseling to promote financial literacy in the feeder regions of the country with the help of self help groups. Even in a city like Mumbai, clusters like Dharavi exist where all residents do not have an access to a bank account needed for money transfers.”
CPI(M) central committee member Nilotpal Basu, “Indian Banks will have to invest certain capital towards propagating financial inclusion in the country. The major challenge for Indian banks and financial institutions today is that a lot of productive investments are going towards speculative activities.”
