MUMBAI (Economy India): The Reserve Bank of India (RBI) Deputy Governor, Swaminathan J, called on bank officials to enhance their understanding of local districts to further improve financial inclusion. While access to banking services has increased, he emphasized the need to focus on service utilization.
Improving Financial Inclusion through Local Understanding
RBI Deputy Governor Swaminathan J, addressing bank officials, stressed the importance of understanding the unique needs of each district to enhance financial inclusion. He pointed out that while significant progress has been made in expanding access to banking services, there is now a greater need to ensure that these services are effectively utilized by the public.
Focus on Service Utilization
In his address, Swaminathan J highlighted that financial inclusion does not end with simply providing access to banking services. He said, “Success has been achieved in reaching out to people, but now we must focus on ensuring that the services are being actively and effectively utilized.”
He urged banks to move beyond account openings and focus on empowering people to use financial services in their day-to-day lives. “It’s essential that every citizen not only has access to banking services but also understands how to use them,” he added.
The Need for Financial Literacy
Swaminathan J underlined the critical role that financial literacy plays in the success of financial inclusion. “Without financial literacy, people will not fully benefit from banking services. It’s essential that we educate them about the products and services available to them.”
He emphasized the need for banks to actively promote financial literacy, especially in rural and underdeveloped areas where knowledge of banking services may be limited.
Role of Banks Beyond Account Openings
The RBI Deputy Governor urged banks to look beyond their immediate role of facilitating account openings. He called for more proactive measures to ensure people are fully utilizing these accounts. “Banking is not just about opening accounts; it’s about ensuring that people know how to use those accounts and are able to do so without any hindrance,” Swaminathan J remarked.
Special Focus on Rural and Underserved Areas
Swaminathan J also directed attention to the financial challenges in rural and underdeveloped areas. He noted that these regions often have limited access to banking services, and when access is available, utilization remains low. “We need to focus on these areas specifically to ensure that financial services reach the most underserved communities,” he said.
In his concluding remarks, Swaminathan J made it clear that banks play a vital role in the country’s financial inclusion efforts. He called on officials to develop strategies tailored to the unique socio-economic conditions of their districts to drive better utilization of banking services. “For financial inclusion to be truly successful, it requires both access and active engagement from the people,” he concluded.
(Economy India)
Source (PTI)
