Inclusion — don’t count on banks
Monday, October 21, 2013
It is well known that working groups and committees are the favoured mechanisms to find solutions for complex issues — particularly in democracies. Such mechanisms bring together varied expertise and, importantly, representation for diverse interests so that “widely acceptable” solutions emerge.
Even so, is one committee every year — in the last five years — for finding out how financial deepening and financial inclusion can be attained in our country, a little too much?
One would think so. Particularly, when this issue is not that complex or marred by diverse, competing interests. The objective of financial inclusion actually would find almost universal acceptance. Still, policy-makers do not seem to be tiring of appointing new committees on the same subject.
Indeed, the recently-constituted Nachiket Mor Committee actually is the sixth such committee, in the last five years, to be asked to go into how effective financial services — meaning savings and credit — can be delivered for India’s vast range/numbers of small businesses. Three RBI working groups, a Prime Ministerial Task Force and a Planning Commission group have exercised themselves between May 2008 and now on this subject. Only that the latest Mor Committee has to consider the “financial inclusion” of low income households, in addition to focusing on small businesses.