Experts feel that the initiative of the Reserve Bank of India (RBI) to provide new banking licenses must promote banking in the under-banked areas of the country.
They feel that residents in the under-banked areas are, for the most part, dependent on shadow-banking operators because of the formal banking sector’s failure to give them access.
In order to attain the objective of financial inclusion, there is a need for more banks, new kinds of banking, particularly mobile banking — which is ideally placed to take advantage of the electronic infrastructure being put in place by the Unique Identity project — and better regulation, experts argue.
In order to achieve this, the RBI must allow new organisational forms: for example, a joint venture between a well-functioning state-owned bank and a telecom operator, experts feel.
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