The Reserve Bank of India, the country’s financial regulatory authority, recently announced the inauguration of a financial inclusion advisory committee (FIAC) under the chairmanship of the bank’s Deputy Governor K.C. Chakrabarty. The 11-person committee is intended to accelerate the government’s efforts at providing accessible financial services and suggest regulatory framework improvements that might ensure financial stability. The committee is also expected to explore issues such as developing viable banking services delivery models, products and processes for rural and urban consumers.
The committee intends to engage stakeholders including the Reserve Bank of India, Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority (IRDA), Pension Fund Regulatory and Development Authority (PFRDA), National Bank for Agriculture and Rural Development (NABARD), civil society and NGOs, among others.
Census figures from 2011 indicate that about 58.7 percent of households had access to banking services.
By Chioma Okwudiafor, Research Associate
About Reserve Bank of India
Established in 1935, the Reserve Bank of India (RBI) undertakes consolidated supervision of the financial sector comprising commercial banks, financial institutions and non-banking finance companies (NFBCs). The current focus of RBI is to supervise financial institutions, consolidate accounting standards, resolve legal issues in cases of banking fraud, monitor non-performing assets and supervise the rating model for the banking sector. In 1979, the National Bank for Agriculture and Rural Development (NABARD) was formed at the behest of RBI to provide regulatory oversight to regional rural banks (RRBs) and to promote the development of agricultural lenders: tasks that had been the responsibility of RBI. While all microfinance institutions (MFIs) and non-banking financial companies still operate under RBI regulations, the responsibility for inspecting nonprofit MFIs, agricultural lenders, RRBs, state cooperative banks, district central cooperative banks and state cooperative agricultural and rural development banks was transferred to NABARD. RBI maintains these responsibilities for for-profit MFIs. RBI’s reserves stood at USD 302 billion at the end of 2011.
Sources and Additional Resources:
Moneycontrol.com Story: RBI sets up panel to speed up financial inclusion
http://www.moneycontrol.com/news/economy/rbi-setspanel-to-speedfinancial-inclusion_767857.html
MicroCapital Story: July 31, 2012, MICROCAPITAL BRIEF: Securities and Exchange Board of India (SEBI) Seeks Comment on “Massive Campaign” Proposed as part of Draft National Strategy for Financial Education https://www.microcapital.org/microcapital-brief-securities-and-exchange-board-of-india-sebi-seeks-comment-on-massive-campaign-proposed-as-part-of-draft-national-strategy-for-financial-education/
MicroCapital Story: June 21, 2012, MICROCAPITAL BRIEF: Number of No-Frills Bank Accounts In India Surpasses 100m
https://www.microcapital.org/microcapital-brief-number-of-no-frills-bank-accounts-in-india-surpasses-100m/
MicroCapital Universe Profile: Reserve Bank of India https://www.microcapital.org/microfinanceuniverse/tikiindex.phppage=Reserve+Bank+of+India+%28RBI%29
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