In India, Nachiket Mor defends the need for specialized banks

Friday, January 31, 2014

Nachiket Mor, Chairman of the RBI’s committee on financial inclusion, strongly defended the need to have specialised banks compared to new full service banks.

He said that the idea of financial inclusion will be better served in the medium term if specialised banks such as payments only banks and lending only banks are allowed to flourish.

Stating that his committee’s recommendations are just one more step to what is already happening in the country, Mor said, “The idea was to build on what is already going on.”

Mor conceded that new banks and large banks are, of course, required but to solve the problem of financial exclusion quickly, existing payment providers such as Airtel Money, M-Pesa and business correspondents like Fino Paytech be given more freedom.

Source: The Hindu Business Line (link opens in a new window)

financial inclusion, governance