.......Overall, the CCFS of Mor has attempted to map what are desirable for the accelerated growth of the financial sector. But, in the process, it has left a lot of questions unanswered as ‘WHY’ of them have not been addressed. May be it may spur scope for setting up of more committees to deal with each of the recommendations. More the harder for the Regulator and the institutions to implement them. Finally, the user of financial services will .......
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The author deserves congratulations in the first place for the succinct analysis of the Report. After the Supreme Court indicted AADHAR instrumentality for deliverance of benefits from any institution Mor Report that relied wholesale on this instrument at once loses its relevance.
Second, the Committee failed to recognize the existing institutions in rural areas and the measures to make them effective in delivering intended benefits to the rural poor.
Third, it has not analysed the ills plaguing the BC instrument and the Banks that engaged them have issues; BCs have issues with the Banks; clients of BCs have issues: all these have not been dealt with in detail.
ATMs – white or color, no matter – are poorly fed even in urban areas. Several ATMs have labeled that they are fed with only Rs.500 and others with Rs.1000 and others with both. Rarely you get Rs.100s out of them. How many of the poor have such denominations and how many can in fact afford them. How can financial inclusion objectives be served with such instruments.
Technology should be a servant and not the master. As the critique put it reliance on lowly populated nations’ experiences and using them as instruments of convenience without examining the risks attached in detail is fraught with danger. Mobile technologies for payments and settlements have serious embedded risks right from passwords to web-enablement and in the context of increasing cyber crimes, how does Mor Committee ensure that the interests of the poor are protected with such introduction?
There are more questions than answers in Mor Committee Recommendations. RBI would actually do well to set aside the recommendations and use for academic purposes.
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