Reserve Bank of India governor cautions Modi government on speed of financial inclusion scheme
Tuesday, September 16, 2014
Reserve Bank of India (RBI) governor Raghuram Rajan’s warning to sarakari banks, on a hunt to win maximum number of bank accounts in minimum days to make Narendra Modi government’s flagship financial inclusion scheme Jan Dhan Yojana a success, reflects the regulator’s concern on the way government using state-run banks to push its populist agenda overlooking prudential norms.
On Monday, speaking at a banking conference, Rajan highlighted the risks of hurrying for bank accounts under the government scheme.
“When we roll out the scheme, we have to make sure it does not go off the track. The target is universality, not just speed and numbers,” Rajan said.