Financial Inclusion in Action

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The Mor Committee Has Delivered Its Report – What Will The Report Deliver? (Part-II)

The Mor Committee on “Comprehensive Financial Services for Small Businesses and Low Income Households” submitted its report in record time. Following the high level review in the previous blog, this one raises some specific comments on certain suggestions by the committee. Use of Aadhaar to open accounts The idea of the Unique Identification Authority of… Continue reading

The Mor Committee Has Delivered Its Report – What Will The Report Deliver? (Part-I)

The Mor Committee on “Comprehensive Financial Services for Small Businesses and Low Income Households” submitted its report in record time. The elaborate report is comprehensive – it has the large aspirational ideas and replete with technical and micro details. The report will no doubt generate a lot of debate and also hopefully lay the foundation… Continue reading

The Mor Committee – Giving Credit Where Credit Is Due (Part-II)

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Priority Sector Lending (PSL) and Credit Pricing   The Mor Committee on “Comprehensive Financial Services for Small Businesses and Low Income Households has also made a number of suggestions related to the priority sector lending (PSL). The Committee recommends raising the overall PSL requirement to 50% of adjusted net bank credit (ANBC) or credit equivalent… Continue reading

Choosing An Agent Management Model

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One important question service providers have to ponder prior to entering the market is the agent hierarchy structure. Adopting a model which fits the market will save time, and money, and reduce stress levels for Senior Executives! The three models below illustrate the most common options available for service providers: The Direct Agent Hierarchy Model enables the… Continue reading

Agent Network Evolution: From License to Live

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When the champagne bottle is popped for the successful launch of a digital financial service (mobile money/ agent banking) agent network, nobody – hopefully, with the exception of the agent network manager (ANM) – seems to appreciate the efforts behind ensuring the product launch is premised on an immediate start in transactions.  This is paramount… Continue reading

The Mor Committee – Giving Credit Where Credit Is Due (Part I)

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The Role of Non Bank Financial Companies (NBFCs) The Mor Committee on “Comprehensive Financial Services for Small Businesses and Low Income Households”  has recommended some very bold, as well as several transformational steps, to reconfigure the delivery of credit to the ‘un-served’ and ‘under-served’ in India. In this blog we analyse some of the recommendations… Continue reading

The Mor Committee Report – The Demand Side Conundrum

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One of the most frequent criticisms of the Mor Committee’s report on “Comprehensive Financial Services for Small Businesses and Low Income Households” is that it ignores the demand side. The report offers a sophisticated vision of the financial architecture and what one commentator describes as “financial services as a fundamental right” for all. It also… Continue reading

A Big Step Forward in India’s Financial Inclusion Deliberations

(This guest post is originally published at IFMR Trust). India faces a major financial exclusion challenge. According to the 2011 World Bank Global Findex Survey, only 35% of Indian adults have access to a formal bank account and 8% borrowed formally in the last 12 months. The Reserve Bank of India (RBI) Committee on Comprehensive… Continue reading

The Mor Committee Report – Will Payment Banks Be Revolutionary or Evolutionary?

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One of the more debated aspects of the Mor Committee’s report on “Comprehensive Financial Services for Small Businesses and Low Income Households” is the proposal for the new class of banks, in particular the “Payments Banks”. While it is probably a stretch to assert that this is an “incremental step” from the existing (Pre-Paid Instrument… Continue reading

Bill Payments —The Secret to Sustainability?

We can probably all agree that “sustainability” is a very tired noun. We use it to describe our wishful hopes for everything from human life on earth to improved supply chain management. And the reason we can’t quite give it up is because our need for a more equitable and enduring ecology, economy, and society… Continue reading