RBI constitutes Deepak Mohanty Committee to frame action plan on financial inclusion
Reserve Bank of India (RBI) has constituted a committee to prepare a 5 year action plan to spread the reach of financial services across country to unbanked population.
The committee will be headed by RBI executive director Deepak Mohanty and comprise total of 14 members
Terms of References of the committee
- It will review the existing policy of financial inclusion, including customer protection framework and supportive payment system.
- In this regard it will take into account the recommendations made by various committees set up earlier.
- Objective: Work out a medium-term or five-year measurable action plan for financial inclusion.
- Suggest a monitorable medium-term action plan for financial inclusion. It will cover various components including payments, credit, deposit, social security transfers, pension and insurance.
- Articulate the underlying institutional and policy framework for financial inclusion. Cover financial literacy and consumer protection, as well as delivery mechanism of financial inclusion.
- For this the committee will encompass both households and small businesses, with more emphasis on rural inclusion including group-based credit delivery mechanisms.
It is expected that the Committee is expected to submit its report in four months from the date of its first meeting. It should be noted that, for promoting financial inclusion, Union government had launched Pradhan Mantri Jan Dhan initiative (PMJDY) in August 2014.
Month: Current Affairs - July, 2015