Opinion: Statistical illusions do not make a reality for financial inclusion in India
Thursday, January 23, 2014
The Committee on Comprehensive Financial Services for Small Businesses and Low Income Households submitted its report to the RBI a few days ago. It is a comprehensive document outlining a number of useful suggestions, e.g. differentiated bank licences.
The report has been criticised mainly for the unrealistic target of two years it fixed for all adults above the age of 18 to get a bank account. Unfortunately, both the report and its criticism of an unrealistic target miss the point. The committee’s main terms of reference were “to frame a clear and detailed vision for financial inclusion and financial deepening in India”.