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Budget needs to act for both demand and supply sides of financial services: Jayshree Vyas

Jayshree Vyas     February 20, 2015

Jayshree Vyas
I would like the see the Budget making allocation for financial inclusion from both the dimensions of demand as well as supply. For "Demand" side, that is, financially excluded population:

(1) Huge allocation for financial literacy campaigns - especially in remote/excluded districts to make them understand products and procedures.

(2)  Huge allocation for campaign for basic technology awareness building. For example, they should understand how to use ATMs - for withdrawal or deposits, or hand-held device for opening A/c.

For supply side:

(1) Allocation for banks/government conducting mass-media campaign for building product/procedure awareness.

(2)  Allocation of subsidy to banks for using robust technology. Preference  should be given to Regional Rural Banks and Co-operative Banks.

Special allocation for National Pension Scheme (Lite) product. Central government is giving co-contribution of Rs1,000 to each individual up to year 2017.  This period for co-contribution should be increased for next ten years.

The author is Managing Director, SEWA Bank

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