Q. Consider the following in suggestions in context with the goal / emphasis of the government to achieve 100% Financial Inclusion:
The Public Sector Banks should be consolidated
New Licenses should be provided to the private players
should give more support to cooperative banks.
Which among the above suggestions is / are most suitable (and involve less controversy) towards achieving the goal of 100% Financial Inclusion?
Answer: 3 only
Notes: Consolidation of the public sector banks would nowhere help in spreading financial inclusion. The consolidation is a big prerequisite for Indian Banks to become global players , so this option is discarded. The new licenses to private sector banks would not help until and unless at least they are asked to open at least 50% of their branches in Rural area. They will not do that , because in rural India people need savings accounts with a Rs. 500 bank balance and the private players look for profit. The rural branches are not easy to run, leave apart the profitability of the branches. So the third option is most suitable.
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