RBI objects to states using PSBs for own inclusion drive

The Reserve Bank of India (RBI) has expressed concern over dilution of its financial inclusion programme as some states, such as Uttarakhand, have launched similar schemes causing confusion among the institutions responsible for implementing them. "Banks have already submitted their financial inclusion roadmap to the RBI," a government official said. "Now, some states want banks also to participate in their own schemes, which will increase burden on them and further dilute the primary task set by RBI."  The RBI had also mentioned the issue of overlap at the state-level bankers' committee. "States can push the co-operative banks and regional rural banks for their own schemes," a senior finance ministry official said. "Public sector banks are under the domain of the Central government and the RBI, and will follow the roadmap as decided." As of now, only 45% of the Indian population has access to basic banking services. The bank to people ratio is also very low with one bank branch catering to about 16,000 people. The finance ministry recently directed bank chairmen and executive directors to monitor 1% of the new villages that come under inclusion plans, and the general managers for 5% villages covered under such plans.