India’s Banks not Inclusive Enough
Thursday, October 3, 2013
Are commercial banking (as it is currently practiced in India) and attainment of financial inclusion mutually exclusive?
It would appear so if the Reserve Bank of India’s parallel (and somewhat expeditious) movement on two separate tracks — one on the issue of new bank licences in the private sector and another on the development of a policy/institutional framework for attaining financial inclusion/financial deepening in India — is any indication.
As is well known, the RBI recently made it amply clear that it wants to announce the new private sector bank licences “within or soon after January 31, 2014”.