Skip to main content

Use of Aadhaar to help in financial inclusion Rajan

By
‘BoB case will be pursued to the ultimate conclusion’
Reserve Bank of India ( RBI) Governor Raghuram Rajan ( pictured) on Thursday welcomed the Supreme Court ruling on the use of Aadhaar cards in more schemes and said it would help in financial inclusion and provide easy access to loans.
“The ruling today will be quite helpful, making us use it in banking services. It will make it easier for financial inclusion,” Rajan told reporters after the central bank’s board meeting here. “Unique Identification ( UID) number will ensure that people will not get multiple loans from different places. We can make sure that it does not happen.
This is an example on how we can make more lending possible,” said Rajan, who was in the city for RBI’s 554th board meeting.
Speaking about the meeting, Rajan said the board discussed the state of the India’s and global economy. “ We discussed regulations, ombudsmen and Ponzi schemes. A wide variety of topics were discussed.” RBI also announced merger of two funds to create a new financial inclusion fund with a corpus of Rs.2,000 crore to support ‘developmental and promotional activities’ for expanding reach of banking services.
Capital infusion
Rajan said RBI is working with the finance ministry to increase capital infusion in the banks. “The government had announced this to be ? 25,000 crore. Some banks have got it and some will get it soon. It is almost done.”
Bad loans
Talking about the non- performing assets, Rajan said the central bank had given a lot of power to banks to recover bad loans. “ Going forward, we will have close look on assets. The banks have to recognise the bad loans, bring all stakeholders into the table to resolve those and effectively monitor it for future.”
Bank of Baroda scam
Expressing concern over the illegal Rs.6,000- crore transfer of funds through a Bank of Baroda branch, Rajan said it would be pursued both by the central bank and investigative agencies to the “ ultimate conclusion” to ensure the guilty were made to “pay the price” for it.
He also said if not pursued quickly, such frauds created an atmosphere of impurity which then bred more such practices.
“We have created a whole new system for fraud alerts, fraud awareness among the banks. My hope is, going forward, we will pursue these frauds to the ultimate conclusion so that those who commit frauds do in fact pay the price for these,” he added.
Business Standard, New Delhi, 16th Oct. 2015

Comments

Post a Comment

Popular posts from this blog

RBI deputy governor cautions fintech platform lenders on privacy concerns during loan recovery

By
  India's digital lending infrastructure has made the loan sanctioning system online. Yet, loan recovery still needs a “feet on the street” approach, Swaminathan J, deputy governor of the Reserve Bank of India, said at a media event on Tuesday, September 2, according to news agency ANI.According to the ANI report, the deputy governor flagged that fintech operators in the digital lending segment are giving out loans to customers with poor credit profiles and later using aggressive recovery tactics.“While loan sanctioning and disbursement have become increasingly digital, effective collection and recovery still require a 'feet on the street' and empathetic approach. Many fintech platforms operate on a business model that involves extending small-value loans to customers often with poor credit profiles,” Swaminathan J said.   Fintech platforms' business models The central bank deputy governor highlighted that many fintech platforms' business models involve providing sm
Post a Comment
Read more

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the rep
Post a Comment
Read more

India can't rely on wealthy to drive growth: Ex-RBI Dy Guv Viral Acharya

By
  India can’t rely on wealthy individuals to drive growth and expect the overall economy to improve, Viral Acharya, former deputy governor of the Reserve Bank of India (RBI) said on Monday.Acharya, who is the C V Starr Professor of Economics in the Department of Finance at New York University’s Stern School of Business (NYU-Stern), said after the Covid-19 pandemic, rural consumption and investments have weakened.We can’t be pumping our growth through the rich and expect that the economy as a whole will do better,” he said while speaking at an event organised by Elara Capital here.f there has to be a trickle-down, it should have actually happened by now,” Acharya said, adding that when the rich keep getting wealthier and wealthier, they have a savings problem.   “The bank account keeps getting bigger, hence they look for financial assets to invest in. India is closed, so our money can't go outside India that easily. So, it has to chase the limited financial assets in the country and
Post a Comment
Read more