Skip to main content

Recommendations of Deepak Mohanty Committee on Medium-term Path on Financial Inclusion

Recommendations of Deepak Mohanty Committee on Medium-term Path on Financial Inclusion

The Reserve Bank of India (RBI) has released the Report on Medium-term Path on Financial Inclusion submitted by 14-member committee headed by RBI Executive Director Deepak Mohanty.
RBI had constituted the committee in July 2015 to examine the existing policy regarding financial inclusion and the form a five-year (medium term) action plan. It was tasked to suggest plan on several components with regard to payments, deposits, credit, social security transfers, pension and insurance.
Key recommendations :

Cash transfer:
 Augment the government social cash transfer in order to increase the personal disposable income of the poor. It would put the economy on a medium-term sustainable inclusion path.
Sukanya Shiksha Scheme: Banks should make special efforts to step up account opening for females belonging to lower income group under this scheme for social cash transfer as a welfare measure.
Aadhaar linked credit account: 
Aadhaar should be linked to each individual credit account as a unique biometric identifier which can be shared with Credit information bureau to enhance the stability of the credit system and improve access.
Mobile Technology: 
Bank’s traditional business model should be changed with greater reliance on mobile technology to improve ‘last mile’ service delivery.
Digitisation of land records: 
It should be implemented in order to increase formal credit supply to all agrarian segments through Aadhaar-linked mechanism for Credit Eligibility Certificates (CEC).
Nurturing self-help groups (SHGs):
Corporates should be encouraged to nurture SHGs as part of Corporate Social Responsibility (CSR) initiative.
Subsidies: 
Government should replace current agricultural input subsidies on fertilizers, irrigation and power by a direct income transfer scheme as a part of second generation reforms.
Agricultural interest subvention Scheme: It should be phased out.
Crop Insurance:

Government should introduce universal crop insurance scheme covering all crops starting with small and marginal farmers with monetary ceiling of Rs. 2 lakhs.

Multiple Guarantee Agencies: 
Should be encouraged to provide credit guarantees in niche areas for micro and small enterprises (MSEs). It would also explore possibilities for counter guarantee and re-insurance.

Unique identification of MSME: 
It should be introduced for all MSME borrowers and information from it should be shared with credit bureaus.

Labels:

Comments

Post a Comment

Popular posts from this blog

India Tech Vision-2035

India Tech Vision-2035 India's technology thinktank under the ministry of science & technology has come out with `Technology Vision 2035' here at the ongoing Indian Science Congress, identifying the challenges ahead and how they can be dealt with through technological interventions while realising the dream of a developed India by the year 2035. The thinktank -Technology Information, Forecasting and Assessment Council (TIFAC) -in the vision document lists a technology roadmap for India, giving details of 12 sectors and technologies that in some cases exist but need to be deployed, some in the pilot stage that must be scaled up and technologies in R&D stage. It, in fact, talks about many future technologies, ranging from flying cars, real time translation software, personalised medicine, wearable devices, e-sensing (e-nose and e-tongue) to 100% recyclable materials among others which may be used in different areas to solve day-to-day problems “The trajectories del...
Post a Comment
Read more

SWACHH BHARAT MISSION

SWACHH BHARAT MISSION Prime Minister Narendra Modi launched the Swachh Bharat Mission (SBM) on October 2, 2014, the birth anniversary of Mahatma Gandhi. The ambitious programme aims to make the streets, roads and infrastructure across the country clean by October 02, 2019, the 150 th  birth anniversary of the Father of the Nation. It is India’s biggest ever cleanliness drive. The relevance of the Swachh Bharat Mission Sanitation has emerged as a key issue since the 2011 Census highlighted e glaring data on lack of toilets in the country by stating that over 26 million people in India defecate in the open. Launched with an estimated cost of around Rs 62,009 crore, Swachh Bharat Mission aims to achieve the elimination of open defecation in the country. Among its other objectives are conversion of insanitary toilets to pour flush toilets, putting an end to the inhuman practice of manual scavenging and carrying out Municipal Solid Waste Management (MSWM). Involvem...
Post a Comment
Read more

Civil Service Bytes News Analysis January 2016

Morning News Analysis with Mind Map   Odd-even scheme for cars rolls out in the National Capital to curb vehicular pollution.  Centre invites Gorkha Janmukti Morcha for tripartite talks on the Gorkhaland Territorial        Administration agreement.  In Bangladesh, two students sentenced to death for killing of a blogger in 2013.  The World welcomes New year 2016 with pomp and show.  In Sports; Indian Test Captain Virat Kohli is BCCI's 'Cricketer of the Year' 2015; Mithali Raj picked for women's top award.  And, India to meet Afghanistan in the final of the South Asian Football Federation Cup.
Post a Comment
Read more