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Efforts to achieve financial inclusion have failed

Special Correspondent

KOLKATA: Despite efforts since 1904, India has failed to achieve financial inclusion, K. C. Chakrabarty, Chairman and Managing director, Punjab National Bank. Admitting that infrastructure was one of the key problem areas, he said a weak delivery model and lack of proper product formulation for the poor were also contributory factors. “Our products are elitist”, he said.

Speaking at a banking conclave organised by the FICCI-Eastern Region Council, he said 41 per cent of the Indian population was still unbanked. While 61 per cent of the rural population was outside the banking sector, in urban areas, 40 per cent remained outside its coverage.

Mr. Chakrabarty said lack of proper technology and business model, inadequate system and gaps in structure and strategy were responsible for this. He strongly advocated the harnessing of mobile technology to increase the coverage saying that unless the banking system became technology-savvy, financial inclusion was not possible.

He recommended providing everyone with a ‘smart card’ which would allow one to access the banking system irrespective of his location.

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