Sophisticated banking services initiatives have been taken for financial inclusion

By | September 9, 2011

A recent press report said that as a part of financial inclusion many initiatives have already been taken viz. nationalization of banks, the lead bank scheme, setting up of regional rural banks, service – area approach, self help groups. In spite of all these efforts only 18 per cent of the population has debit cards and 2 per cent have credit cards. The Reserve Bank of India has prescribed at least four products such as a no-frills banking account with no requirement for a minimum balance and overdraft facility; remittance product for electronic benefit transfer; pure savings product and entrepreneurial credit such General Credit Card and Kisan Credit Card.

The RBI has also instructed all banks to set up business correspondents in all villages with 2000 or more population. The RBI has also directed the banks to open 25 per cent of new branches in rural areas.

Besides these core – banking measures multichannel approach facilities such as handheld devices, mobiles, cards, micro ATMs, branches, kiosks and mobile – wallets, integrating the frontend devices’ transactions were also provided along with the banks’ core – banking solution.

Technologies like biometric card, handheld biometric point – of – sale (POS) device with voice guidance in the local language for confirmation and transaction, GPRS – enabled mobile phones and so on were also included under financial inclusion initiatives.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit for the latest rates/offers.
Category: Articles Glossary Tags:

About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

Leave a Reply

Your email address will not be published. Required fields are marked *