According to a recent press release from the Reserve Bank of India, decisions regarding financial inclusion were taken at the State Level Bankers’ Committee (SLBC) meeting chaired by Dr.D.Subbarao, the RBI Governor. The decisions included that the banks in Rajasthan would ensure that all 3,883 identified villages with a population of more than 2,000 are being covered in the first phase of financial inclusion by March, 2012.
The banks would adopt specific strategies to improve credit – deposit (CD) ratio in three districts, namely, Dungarpur, Rajsamand and Sirohi which have low CD ratio. Banks would set up at least one financial literacy and credit counselling centre in the minority blocks in the State by the end of January, 2012.
In order to recapitalize five regional rural banks in Rajasthan, the State Government would release Rs. 39 crore. The State Government and banks has to carefully evaluate the subject of issuing finance to power distribution companies and the decision should lie with the interest of the State government and banks.
The State Government might find ways to add the inclusion of financial literacy as a part of curricular and extra-curricular in schools. The State Government would revise the amendment made to the Public Debt Recovery Act, 1952 for improving the recovery climate.
The RBI has recently hiked base rates by 25 basic points, in order to control inflation. The hike in base rate has affected the home loan and other loan borrowers as the hike in base rates by the RBI has pushed banks to hike their lending rates.