Budget needs to act for both demand and supply sides of financial services: Jayshree Vyas
Jayshree Vyas February 20, 2015I 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.
(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