RBI panel moots banks for low income households
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)
- Tweet this
- Share this
- Digg this
- Ten countries scour sea for Malaysia jet lost in "unprecedented mystery"
- Pilot of missing Malaysian flight an aviation tech geek
- Missing Malaysian jet may have disintegrated in mid-air - source
- TIMELINE - The search for missing Malaysian jet
- Hijacking not ruled out in missing Malaysian jet - chief investigator
The disappearance of a Malaysian jetliner is an "unprecedented aviation mystery", a senior official said on Monday, with a massive air and sea search now in its third day failing to find any confirmed trace of the plane or the 239 people aboard. Full Article