RBI panel moots banks for low income households

MUMBAI Tue Jan 7, 2014 6:26pm IST

A customer deposits money at the teller counter of a bank's microfinance division in Mumbai October 25, 2008. REUTERS/Punit Paranjpe/Files

A customer deposits money at the teller counter of a bank's microfinance division in Mumbai October 25, 2008.

Credit: Reuters/Punit Paranjpe/Files

Related Topics

MUMBAI (Reuters) - A Reserve Bank of India panel has recommended setting up a special category of lenders that would exclusively cater to small businesses and low income households to expand the number of customers with access to banking services.

The panel said these banks would focus on providing payment services and deposit products, with a maximum balance of 50,000 rupees, to its target customers.

The report also recommended setting up a category of wholesale banks in India that would provide funds to other banks and financial institutions that directly lend to low income households.

The recommendations come before the RBI is due to issue new banking licenses as part of efforts to improve the financial reach in a country where 60 percent of people do not have a bank account and nearly 90 percent of small businesses have no formal financial access.

The recommendations were issued by a panel set up by RBI Governor Raghuram Rajan soon after he joined office in September and is headed by veteran banker Nachiket Mor.

($1 = 62.3450 rupees)

(Reporting by Suvashree Dey Choudhury and Subhadip Sircar; Editing by Rafael Nam)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

School Shooting

School Shooting

Two killed, four wounded in Washington state school shooting.  Full Article 

Sundar Pichai Elevated

Sundar Pichai Elevated

Google's Pichai to oversee major products and services.  Full Article 

Need For Reforms

Need For Reforms

Euro zone risks "relapse into recession" without structural reforms - Draghi.  Full Article 

Diwali Sales

Diwali Sales

Gold sales jump about 20 pct for Diwali - trade body  Full Article 

World Bank Rival

World Bank Rival

Three major nations absent as China launches W.Bank rival in Asia  Full Article 

Wal-Mart India

Wal-Mart India

Murali Lanka appointed as Wal-Mart India operations chief  Full Article 

Health Of Lenders

Health Of Lenders

25 European banks set to fail health checks - sources.  Full Article 

Special Report

Special Report

Why Madrid's poor fear Goldman Sachs and Blackstone  Full Article 

India Insight

India Insight

Kalki Koechlin on her role as a disabled girl in “Margarita, With a Straw”  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage