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In a break from the past, the RBI has simplified procedures for migrants, who have no identification papers, to open bank accounts.
On the issues of local financial agencies like co-operative banks, regional rural banks, micro-finance institutions and others, she said that strengthening them would generate employment and setting up small and medium business enterprises in all remote corners of the country.
Concurring with Lord Mayor of London's view that the expansion of banking sector reach and financial inclusion are the key to a country's economic growth, Thorat said that the RBI's recent changes in certain banking norms have been carried out with the aim of allowing penetration of banking activities to the un-banked rural areas.
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Reader’s comments
Comment 1: In the absence committed bankers any credit simplification is meaningless to he rural needy. The bank credit is advanced either to the rural afluent or the person with exceptional manuverability. The poor finds it too cumbersome and beyond his reach. Though Micro Credit through SHGs has been a solid step in this direction yet the poor finds stranded every where. The bankers need to change their attitude other wise the rural branches of Banks shall remain unsustainable and hence continued to be discouraged. Will there be a some beginning?
Posted by : Gopal Singh Thakur - Tuesday, April 29, 2008
Posted by : Gopal Singh Thakur - Tuesday, April 29, 2008
Comment 2: Madhu's comments are lukewarm. The problems faced by rural people should be brought to limelight. I want to bring to the attention of everybody a micro credit system that has been working well in our area. A bank advances loan unto Rs 12000 per woman to be paid in installments every week with interest. Women groups are identified who own a house. Every week the representative of the bank come to a specified place and collect the money from women. If any woman or group of women fails to turn up, it is bound on the rest of the women present to pay the money. This way everybody has a responsibility for prompt payment. The system has been working well. This needs to be expanded.
Posted by : Dr.A.Jagadeesh - Saturday, April 26, 2008
Posted by : Dr.A.Jagadeesh - Saturday, April 26, 2008
Comment 3: We all know the VERY facts mentioned by all the readers. So finally what is the solutions to that? Do you think that mentioning such knows facts like this wil solve the problem of this poor villagers or change their lifes. I think we all shld discuss/brain storm to find the ways through which we can STOP this completely and help the farmers to get access to the banks easily. - Madhu
Posted by : Madhu - Friday, April 18, 2008
Posted by : Madhu - Friday, April 18, 2008
Comment 4: Financial literacy and credit counselling are good things, if you know how to get villagers to listen. When in need they go to a pawnbroker rather than a bank, knowing very well they are exploited financially. Credit counselling ? Rural credit seekers care more for ready access to cash than for low interest rate; they want prompt service, not paper-work; village money-lender gives them cash for the asking, and do not ask them for colateral. The only surity on which a money-lender advances money is his belief in borrower’s capacity to pay, and his ablility to collect.
Do look up this post, if you have time - http://gvk2.wordpress.com/2008/04/18/where-pawn-brokers-score-over-banks/
Posted by : G V Krishnan - Friday, April 18, 2008
Do look up this post, if you have time - http://gvk2.wordpress.com/2008/04/18/where-pawn-brokers-score-over-banks/
Posted by : G V Krishnan - Friday, April 18, 2008
Comment 5: 1. The concept "access to credit not the cost" prevails in rural arena. So poor's dependence on money lender traditionaly exists. Even some of the Micro financial Institutions and SelfHelpGroups(SHG) charge interest equal to that of money lenders
2. The loan waiver may not help the poor much.as the poor depend more on informal credit system. and MFI/SHG system which are not covered for loan waiver
3.SHG should focus more on social empowerment than economic empowerment through microfinance . Unfortunately many SHGs are formed oflate only for micro purpose wich will not serve the purpose. In the context of financial inclusion policy , the drop outs in SHG/MFI system which is commonly prevailing in rurla fromt point out inclusion of non poor on one hand and exclusion of very poor on the other
4.Mere credit suppy without provison of required non credit inputs such as training raw metetrials( seed, fertilizer,pesticied ) ,. marketing ,price etc would not lead to income generation and ends up with debt trap. Farmers' suicides in Maharastra teach some lessons
Posted by : Dr.V.Rengarajan - Thursday, April 17, 2008
2. The loan waiver may not help the poor much.as the poor depend more on informal credit system. and MFI/SHG system which are not covered for loan waiver
3.SHG should focus more on social empowerment than economic empowerment through microfinance . Unfortunately many SHGs are formed oflate only for micro purpose wich will not serve the purpose. In the context of financial inclusion policy , the drop outs in SHG/MFI system which is commonly prevailing in rurla fromt point out inclusion of non poor on one hand and exclusion of very poor on the other
4.Mere credit suppy without provison of required non credit inputs such as training raw metetrials( seed, fertilizer,pesticied ) ,. marketing ,price etc would not lead to income generation and ends up with debt trap. Farmers' suicides in Maharastra teach some lessons
Posted by : Dr.V.Rengarajan - Thursday, April 17, 2008
Comment 6: "Harashi" is one of the medium where in local money landers swize poor farmers. In harshi funds are auctioned. I was in Ajanta area of Maharastra in the year 1998. Banak of Baroda was the branch under which as all near by vilages were under or "Dattak" a Marathi term used.
I was in vasai village where in Sarpanch and three other money landers of the village had absolute power. All the loan financed to poor farmers, I mean in the name of poor farmers went directly to these people through direct understanding with Branch Manager and Sarpanch. I had lodged a complaint with police patil result I was thrown out of Village. I was doing social work for "Pani Adawa Pani Jirawa" scheme.
I have a strong beleife that all these loan waiver will serve no purpose unless poor farmers are removed from the shakcles of moneylanders....
Posted by : Shrikant Barve - Thursday, April 17, 2008
I was in vasai village where in Sarpanch and three other money landers of the village had absolute power. All the loan financed to poor farmers, I mean in the name of poor farmers went directly to these people through direct understanding with Branch Manager and Sarpanch. I had lodged a complaint with police patil result I was thrown out of Village. I was doing social work for "Pani Adawa Pani Jirawa" scheme.
I have a strong beleife that all these loan waiver will serve no purpose unless poor farmers are removed from the shakcles of moneylanders....
Posted by : Shrikant Barve - Thursday, April 17, 2008
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