Financial Inclusion needs to be meaningful, says RBI Governor

• Banks in Rajasthan will ensure that all 3,883 identified villages with total population of more than 2,000 are meaningfully covered in the first phase of financial inclusion plan by March 2012.

• Banks will draw up specific strategies to improve the credit-deposit ratio in three districts, namely, Dungarpur, Rajsamand and Sirohi which have low CD ratio.

• Banks will set up at least one financial literacy and credit counselling centre in the minority blocks in the State by the end of January 2012.

• State government of Rajasthan will release its share of Rs. 39 crore towards recapitalization of five regional rural banks in Rajasthan.

• Banks and State government to carefully evaluate the issue of extending finance to power distribution companies and take decision in the best interest of the banks and the State of Rajasthan.

• The State Government may try to innovate and explore the possibility of inclusion of financial literacy as a part of curricular or extra-curricular activity in schools.

• The State government may revisit the amendment to the Public Debt Recovery Act, 1952 for improvement in recovery climate.

These were some of the decisions taken at the special State Level Bankers’ Committee (SLBC) meeting held today in Jaipur. Dr. D Subbarao, Governor, Reserve Bank of India chaired the special SLBC meeting, which was attended by senior officials of the State and Central Governments, National Bank for Agriculture and Rural Development (NABARD), National Housing Bank (NHB) and bankers apart from the Reserve Bank (officials). The Governor and other senior officials of RBI are in Jaipur to attend a meeting of the Reserve Bank’s Central Board of Directors being held in Jaipur on October 13, 2011.

While in Jaipur, the Reserve Bank Governor met Shri Ashok Gehlot, the Hon’ble Chief Minister of Rajasthan and discussed issues of mutual interest. He along with Deputy Governors Dr. K C Chakrabarty, Dr. Subir Gokarn, Shri Anand Sinha and Shri H R Khan also addressed the Rajasthan Chamber of Commerce.

Earlier in the day, while inaugurating the Newsibition at Jawahar Kala Kendra, Jaipur in the presence of students from Maharani Gayatri Devi Girls School, Neerja Modi School and Saraswati Senior Secondary School, the Governor briefly interacted with the students and answered their questions relating to the Indian economy and the Reserve Bank functioning.  The Newsibition showcases some of the historic events from the 75 years of the Reserve Bank’s history through photographs, documents and newspaper clippings. Hence the moniker ‘Newsibition’. The Newsibition is a part of the Reserve Bank’s efforts to demystify itself and tell people about ‘What the Reserve Bank does and why is it important’.

R.R. Sinha
Deputy General Manager

Press Release : 2011-2012/575