Avoid arbitrary pricing of banking products & services, says RBI’s Chakrabarty
Collected news item from Business Line
KOCHI, FEB. 11:
The Reserve Bank of India is prodding banks to pursue the twin objectives of enhancing financial literacy and achieving financial inclusion.
This will help bring the marginalised sections of society to the mainstream, said K.C. Chakrabarty Deputy Governor RBI.
Banking services have to be made available close to where the individual needs them, at prices he can afford, and in a transparent manner, he said, while speaking on ‘Banking as a Fundamental Right of People’ at the 27{+t}{+h} National Conference of All-India Bank Employees Association here.
He pointed out that the financial inclusion efforts have not achieved the desired results despite the banking system being in existence for more than 200 years and several banks credited with more than 100 years of service.
Considering the widespread exclusion of people from financial mainstream, the RBI in 2005 launched a drive to extend banking services to all inhabitations in the country.
Banking services are now available in over two lakh villages, but about four lakh villages still have no access to the services. Banking services can be extended to un-banked centres in both rural and urban areas by leveraging on technology, he added.
Arbitrary pricing of banking products and services must be avoided to bring these within the reach of the common man, he emphasised.
He said that employee associations have a pivotal role in instilling a sense of commitment and help make available banking services at customers’ doorsteps.
Victor Louis Anthuvan, a Chennai-based economist, underlined the need to bring back to India some $450 billion of unaccounted money stashed away in tax havens.
Coming down heavily on the taxation policies, he wanted a complete restructuring of the policies taking away unnecessary and unreasonable exemptions and concessions.
P. Sainath, Rural Affairs Editor, The Hindu, said that only by extending banking services can the agricultural sector be rescued from collapsing.
Agricultural loans are not reaching the right hands. Farmers also fall victims to the prevailing credit system, he said.
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Following are few artciles written in the past --- click on link to read more
Following are few artciles written in the past --- click on link to read more
SATURDAY, APRIL 28, 2012
Why not Uniform Interest Rate
The war continues among banks on interest rate. After nationalization of banks in 1969, RBI used to decide rate structure for deposits and for lending uniformly applicable for all banks. But after adoption of reformation policy in the year 1991, RBI freed lending rates excepting loans upto Rs.2.00 lacs. In the name of competition, banks started rate war to attract high profile customers into their fold. Social banking concept and mass banking approach initiated through nationalization of banks have now become the history.
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RBI To Check Bank's Interest Rate And Spread
| Loan pricing by banks comes under RBI lens |
| Base rate effectiveness under review due to lack of monetary transmission |
| Manojit Saha / Mumbai Jul 25, 2012, 00:24 IST Just two years after its launch, the base rate — the benchmark reference rate for all bank loans — has come under the Reserve Bank of India’s scanner as the regulator feels the methodology of rate fixation has hindered the transmission of monetary policy measures.
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