RBI financial inclusion banking

I am new employee of Reserve Bank of India and I want to know about recent news in which RBI asks banks to make financial inclusion more meaningful so tell me about this news.

[Pathak]

Following is the details in which RBI asks banks to make financial inclusion more meaningful.

According to Zeebiz.com website, “The Reserve Bank Thursday asked banks to make financial inclusion more meaningful and ensure qualitative coverage through proper functioning of banking correspondents.

"Banks should ensure qualitative coverage of financial inclusion through proper functioning of banking correspondents," RBI Governor D Subbarao said in a specially convened meeting of State Level Banking Committee (SLBC) after its central board meeting Thursday.

In the meeting to discuss state-specific issues, Subbarao said banks should properly publicise that no-frill account are not scheme-specific and should be used for all type of banking transactions.

He said, "SLBC should complete allocation of villages of population of less than 2,000 for the purpose of coverage of financial inclusion by September 15, 2012".

He also said four lead banks in the state should organise convention of all banking correspondents in their respective districts in collaboration with the district administration to assess the issues affecting the smooth operation of BC-ICT ((Business Correspondent - Information and Communication Technology) model in the villages.

Along with the five districts identified in the Union Budget for electronic payment in the state, in eight previously selected blocks, banks should ensure that accounts opened for beneficiaries are linked for payment of social and subsidy benefits under various government schemes, he added further.

The RBI Central Board meets at least once every quarter. Apart from holding meetings in Mumbai, Chennai, Kolkata and one in New Delhi after the Union Budget which is addressed by the Finance Minister - the rest of the meetings are held in other state capitals by rotation.

The main function of the Central Board of Directors of the Reserve Bank is to provide overall direction to the Reserve Bank's affairs.”

Hello sir I want to know about the financial inclusion banking of RBI so please provide me information about this.

[sumit]

Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society.

Parameters of RBI Financial inclusion

Financial inclusion policy comprises the following:
1. No Frills Accounts
2. Simplification of KYC norms
3. Use of Intermediaries
4. Introduction of General Credit Cards
5. Use of Technology
6. Use of Regional Language
7. One-time Settlement
8. Financial Education

RBI Strategies for Financial Inclusion

i) Policy measures

ii) Making financial services simple, hassle-free and affordable

ii) Creating a conducive climate for lending
iv) Use of innovative products

Needs for financial inclusion

i) Opening of No-Frills accounts
ii) Bouquet of Financial services
iii) Engaging Business Correspondents
iv) Use of Technology
vi) Simplified Branch Authorization
vii) Opening of branches in unbanked rural centres
ix) Direct Benefit Transfer
x) Financial Literacy xi) Financial Inclusion Plan of Banks
xii) Robust Institutional Mechanism
xiii) Road Ahead Extending the frontiers of the formal financial system