Technology, Not Coercion, for Banks

........However, the RBI reckons that financial inclusion can be achieved only through expansion of branch networks to rural areas. It says that a new bank must have at least 25% of its branches in rural areas. This is absurd. Established banks have not found it worth their while to open rural branches. Making new banks waste capital is a bad idea. Instead, the RBI must allow innovative forms of banking, especially mobile banking that is well-placed to leverage on the electronic infrastructure being put in place by the unique identity project..............

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