Transcript Holding Pattern of Government Securities

Financial Literacy & Inclusion
- The Indian Way
BIPIN NAIR
ASSISTANT GENERAL MANAGER
RURAL PLANNING & CREDIT DEPARTMENT
AFI GPF Mexico 2011
India- Some facts
Geographical area 7th largest in the world Population - 2nd in the world–
1.2 billion
28 States and 7 Union
Territories - 625 districts
600 thousand villages in
India. However, only 33495
villages had a bank branch
One branch per 14,000
population - 55 % have
deposit accounts & 9 % credit
accounts
AFI GPF Mexico 2011
Multilingual and multiethnic
society - High poverty &
Illiteracy - Dependence on
informal sources of finance
Policy Initiatives
 Bank led model adopted to achieve planned, sustained and structured
financial inclusion
 Banks mandated to provide access to financial services in nearly 74000
villages with population over 2000 by March 2012.
 Three year Board Approved Financial Inclusion Plan by banks to be rolled
out by March 2013 for extending financial unbanked villages.
 Business Correspondent/ Business Facilitator Model - Availability of
Door-Step banking services to all 600 thousand villages in the countryNext 3-5 years
 Regulatory norms on KYC relaxed.
 Simplified branch authorisation. Mandatory opening of 25 % of new
branches by banks in unbanked rural centers.
 Include criteria regarding Financial Literacy and Inclusion in performance
evaluation of the staff.
 Availability of minimum four banking products under Financial Inclusion is
being ensured .
AFI GPF Mexico 2011
Policy Initiatives
• Nearly 250 Outreach Programs involving participation of
senior executives from RBI conducted across the country.
• Nearly 200 remote unbanked villages adopted by RBI for
transformation into model villages characterized by 100%
financial inclusion.
• State Governments to include Financial Literacy as part
of the school curriculum.
• Issuance of unique identification numbers (AADHAR) to
beneficiaries for rolling out social security payments
through the banking channel.
AFI GPF Mexico 2011
Project Financial Literacy
AFI GPF Mexico 2011
ACHIEVEMENTS under FINANCIAL INCLUSION
•Total Number of villages covered
99840
•Villages covered through branches
22684
•Villages covered through BCs
76801
•Villages covered through other modes
355
•Number of No Frill Accounts
74.39 mio
•Number of Agricultural Credit Cards
22.49 mio
•Number of General Credit Cards
AFI GPF Mexico 2011
0.95 mio
Way Forward Coordinated National Strategy
 The key is establishing an appropriate
Business Delivery Model through the
involvement of all stakeholders to make
Financial Inclusion a reality.
 A National Level Strategy for Financial Literacy
is the need of the hour.
 Coordination with Central and State
Governments as well as with Global
Organisations.
AFI GPF Mexico 2011
Thank you.
[email protected]
AFI GPF Mexico 2011