The Reserve Bank of India’s (RBI’s) recently released the National Strategy for Financial Inclusion (NSFI) report. The report says:
- Along with traditional banking outlets, payments banks, small finance banks, co-operative banks and other non-bank entities such as fertilizer shops, fair price shops, should also promote efficiency and transparency through digital transactions,
- Increase outreach of banking outlets of scheduled commercial banks, payment banks, among others to provide banking access to every village within a 5 km radius of 500 households in hilly areas by March 2020.
- The government has been trying to take steps to provide access to credit at an affordable cost and financial instruments to the low-income group and the weaker sections of the society.
- PM Jan Dhan Yojana that to seeks to provide universal banking services for every unbanked household, pension scheme such as Atal Pension Yojana and insurances schemes such as PM Suraksha Bima Yojana are some of the schemes launched by the National Democratic Alliance (NDA) alliance led government in the last five years.
- India has largely benefited from the Jan Dhan-Aadhaar- Mobile (JAM) trinity over the last few years, steps are needed to strengthen the digital financial services’ eco-system including increased awareness on usage of digital modes of transactions, increased acceptance infrastructure and a safe environment incorporating the principles of consent and privacy.
