News

Indian banks must reach out to unbanked says RBI

March 23, 2012

The Reserve Bank of India is asking banks to comply with the recommendation that they open at least one-quarter of their new branch banks every year in unbanked areas with a population less than 10,000, said a news story at lankabusinessonline.com.

"I hope that prescription would be complied with (by all the banks)," said RBI Governor D Subbarao at a state-level conference of bankers. He said planning for the new branches should be done in consultation with state government to ensure financial inclusion and awareness.

"This is a collective effort of central government and banks to provide banking facilities to low income house hold groups in the country," Subbarao said.

The governor highlighted the important functions of RBI in regard to issuing and managing currency, controlling inflation through formulation of monetary policy, expanding outreach and banking awareness, and deposit insurance schemes. He also highlighted the features of "no frills" accounts, general credit cards, Kisan Credit Cards and overdraft protection for accounts.

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