After clearing the decks for 23 new entities to foray into the banking space, the Reserve Bank of India (RBI) is mulling to grant more licences to promote financial inclusion in the country.
RBI Deputy Governor S S Mundra said the banking regulatory body is taking concerted efforts to allow new players to enter into the banking arena to expand presence of banks.
“In the coming months, more and more banks would be commencing their operations. However, I firmly believe that the key to financial inclusion is that all these new players are taken into the national plan of financial inclusion in an orderly manner,” he said.
Notably, IDFC and Bandhan Financial Services emerged successful out of 25 contenders for universal bank licences issued by the RBI in April 2014. The said entities have already kicked off their operations.
Besides, RBI has given in-principle nod to ten entities to establish Small Finance Banks to render basic banking services to small farmers and micro industries.
In August, the central bank gave its nod to 11 entities for launching Payments Banks.
Mundra emphasised on the need of structural reform in the agriculture sector.
He admitted that there has been improvement in savings in the last few months.
“If there is persistent high inflation rate then the citizens would move towards other assets rather than financial savings,” he said.
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