Bankers told to improve financial inclusion

Guest of honour : V.A.Joseph, Managing Director of South Indian Bank, receives Dr. K.C. Chakrabarty, Deputy Governor of the Reserve Bank of India, who arrived at a reception on Thursday

KOCHI: Deputy Governor of Reserve Bank of India K. C. Chakrabarty called on bankers in Kerala to set an example for the country in financial inclusion by leveraging technology and cutting transaction cost. Financial inclusion cannot be achieved without embracing new technology and cutting cost, the Deputy Governor told bankers, who had gathered on Thursday at the new administrative building of the South Indian bank in Kakkanad to listen to him at a reception accorded to him by the State Forum of Bankers' Clubs and Bankers' Club, Greater Kochi. Dr. Chakrabarty told the bankers that if the policies formulated by Reserve Bank of India stood in the way of their serving their customers better, they should take up the issue. He deplored the fact that money lenders still held sway in the country as banking penetration was only to the tune of around 40 per cent. He also said that money lenders had got organised themselves and formed a union and submitted their views to the Reserve Bank of India. Expanding business and retaining it are the two challenges before the bankers, he said as he highlighted the plight of banking in the country that did not treat its customers too well. Bankers must work to establish a culture that will, in turn, establish the rights of the customers, Dr. Chakrabarty added. He also warned bankers against opening accounts that led to illegal foreign remittances. If you find that a new account is being opened by a suspicious entity do not let it open an account, he said. Dr. Chakrabarty reiterated the RBI stand that loans given to gold loan companies by banks would not be counted as priority sector lending. Ealier, Dr. Chakrabarty inaugurated the new administrative building of the South Indian Bank. Amitabha Guha, Chairman of the South Indian Bank, V. A. Joseph, Managing Director, Abraham Tharyan, Executive Director and K. U. Balakrishnan, Secretary and R. R. Warrier, President, State Forum of Bankers' Clubs were among those who spoke on the occasion.  

Hindu