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Financial Inclusion – A Must To Enable Double Digit Growth
June 18th, 2010 |
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Financial inclusion is one of the key elements that will give a thrust to financial deepening and thus economic growth, given that India has over 50 per cent of the population who has no access to banking.
The power panel of the 23rd Skoch Summit on Financial Deepening- Mr. Naveen Surya, Managing Director, Itz Cash Cards Pvt Ltd, emphasized the need for a framework for enabling and sustaining double digit growth. The Panel which constituted of Vijay L Kelkar, Former Chairman, 13th Finance Commission, Mr S S Tarapore, Prof Bibek Debroy Mr James Shapiro, Head (Market Development), Bombay Stock Exchange Ltd, Dr Ajit Ranade, Chief Economist, Aditya Birla Group, Mr Vidhu Shekhar, Vice President, National Stock Exchange of India Ltd, Mr Surya discussed various facets for a "Framework for Enabling and Sustaining Double Digit Growth".
Mr. Surya said "There is a need for a product that will not only bring this large population under the fold of financial inclusion but also give them the access and benefits to a larger portfolio of financial products including insurance, accident cover and even various forms of investment besides transactions.
The focus of the discussion was to bring the 50 per cent of the under serviced population under the fold of financial inclusion which would be about providing them access to various financial instruments like insurance and investment which will help the individual and bring them closer to the benefits of convergence but also propel economic growth.
The top 30 per cent have all the facilities of financial inclusion, the bottom 20 per cent cannot afford it but there is 50 per cent of the population who needs financial services. Addressing them will lead to market expansion and economic growth.
Mr Surya added, "The need today is of a product which not only encompasses the basic function of money but is about everything from transaction, transfer, an access to digital convergence and its benefits, insurance, accident insurance cover and even investment".
The need is three fold 1. Innovation for creating a product which addresses the needs of this 50 per cent of the population, 2.Support and change in regulations and 3, creation of a delivery mechanism. The stress was on the need for an integrated channel which will address the issue of financial inclusion, and take it beyond the realms of opening a bank account. Only this will lead to double digit growth in the economy. |
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| Link:
http://www.efytimes.com/e1/47257/fullnews.htm |
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