The Reserve Bank of India has set up a 14-member committee for working out a medium-term (five-year) measurable action plan for financial inclusion. The committee will be headed by Deepak Mohanty, Executive Director of RBI. He will review the existing policy of financial inclusion, including supportive payment system and customer protection framework.
Functions of Committee:
- The committee will provide a suggestions for various components like payments, deposits, credit, social security transfers, pension and insurance.
- It will also study cross-country experiences in financial inclusion to identify key learnings.
- The committee will articulate the underlying policy and institutional framework, also covering consumer protection and financial literacy, as well as the delivery mechanism of financial inclusion encompassing both households and small businesses.
- It will do so with particular emphasis on rural inclusion, including group-based credit delivery mechanisms.
Financial Inclusion
Financial inclusion is the process of ensuring access to appropriate financial products and services needed by all sections of the society in general, and vulnerable groups such as weaker sections and low-income groups in particular, at an affordable cost in a fair and transparent manner by mainstream institutional players.
