Write a letter to your friend explaining him what is financial inclusion and its impact on Indian economy .Include relevant government programmes related it too
Kiran,
No 345
Ashok Nagar,
Pune.
29th October 2015
Manu Kumar,
Chokar Nagar,
Pune.
Dear friend,
I hope this letter finds you in good shape. How is everything with you? How are uncle and aunt?
I am writing this letter to discuss the current initiative taken by our government to provide banking facilities to the people in remote areas.
.Fnancial inclusion, and establishment of the financial inclusion fund and the financial inclusion technology
. This apart, there are over 83 million Kisan Credit Cards . Similarly, there are over 5 million self-help
groups (SHG) having savings of almost Rs 40 billion.The Reserve Bank of India (RBI) today said that financial inclusion is not restricted merely to opening of bank accounts and should imply provision of all financial services like credit, remittance and overdraft facilities for the rural poor.
The RBI circular on Business Correspondent Model allows, NGOs/ MFIs set up under Societies/ Trust Acts, Societies registered under Mutually Aided Cooperative Societies Acts or the Cooperative Societies Acts of States, section 25 companies, and Post Offices to act as Business Correspondents. Most organizations incorporated in these forms have social mandates, with less emphasis on business model. The present guidelines exclude NBFCMFIs from the ambit of being a Business Correspondent. The current experience of MFI outreach in India shows high growth and outreach to the poor, and at the same time, limitations on the types of financial services that can be offered by them. The BC framework allows for this to be corrected. However, currently, the legal form that allows MFIs to grow in size and scale and access greater resources is not permissible as a Business Correspondent. Most MFIs incorporated under other legal forms, permissible under the BC framework; aim to reregister as NBFCs to attract capital for expansion and scale of business. Non Banking Finance Companies (NBFCs) should be brought under the ambit of Business Correspondent framework, as they not only serve the need of scale through their high outreach, but also have access to resources for professional management of an enhanced responsibility through the BC model.
Your loving friend,
Kiran.
Kiran,
No 345
Ashok Nagar,
Pune.
29th October 2015
Manu Kumar,
Chokar Nagar,
Pune.
Dear friend,
I hope this letter finds you in good shape. How is everything with you? How are uncle and aunt?
I am writing this letter to discuss the current initiative taken by our government to provide banking facilities to the people in remote areas.
.Fnancial inclusion, and establishment of the financial inclusion fund and the financial inclusion technology
. This apart, there are over 83 million Kisan Credit Cards . Similarly, there are over 5 million self-help
groups (SHG) having savings of almost Rs 40 billion.The Reserve Bank of India (RBI) today said that financial inclusion is not restricted merely to opening of bank accounts and should imply provision of all financial services like credit, remittance and overdraft facilities for the rural poor.
The RBI circular on Business Correspondent Model allows, NGOs/ MFIs set up under Societies/ Trust Acts, Societies registered under Mutually Aided Cooperative Societies Acts or the Cooperative Societies Acts of States, section 25 companies, and Post Offices to act as Business Correspondents. Most organizations incorporated in these forms have social mandates, with less emphasis on business model. The present guidelines exclude NBFCMFIs from the ambit of being a Business Correspondent. The current experience of MFI outreach in India shows high growth and outreach to the poor, and at the same time, limitations on the types of financial services that can be offered by them. The BC framework allows for this to be corrected. However, currently, the legal form that allows MFIs to grow in size and scale and access greater resources is not permissible as a Business Correspondent. Most MFIs incorporated under other legal forms, permissible under the BC framework; aim to reregister as NBFCs to attract capital for expansion and scale of business. Non Banking Finance Companies (NBFCs) should be brought under the ambit of Business Correspondent framework, as they not only serve the need of scale through their high outreach, but also have access to resources for professional management of an enhanced responsibility through the BC model.
Your loving friend,
Kiran.
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