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
- EXCLUSIVE - Malaysia plane probe narrows on mid-air disintegration - source
- UPDATE 1-Putin foe Khodorkovsky says Russia is lying about Ukraine
- Missing Malaysian jet may have disintegrated in mid-air - source
- UPDATE 2-Interpol probes more suspect passports from missing flight
- UPDATE 3-Putin defends Crimea's decision to hold referendum
Officials investigating the disappearance of a Malaysia Airlines jetliner with 239 people on board suspect it may have disintegrated in mid-flight, a senior source said on Sunday, as Vietnam reported a possible sighting of wreckage from the plane. Article | Exclusive