Financial Inclusion in Action

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Predictions for Regulators of Digital Financial Services

It is always dangerous to make predictions in an industry which is expanding and evolving rapidly, so it is with trepidation that I now do so. However, the predictions below are based on market insights and observations from working many years within the mass retail financial sectors and in Digital Financial Services (DFS). 1. DFS will… Continue reading

Does the New Inclusion Scheme Risk Adding a Rs. 1,000 Billion Subsidy Burden?

The Prime Minister is all set to announce a mega new programme on financial inclusion on India’s Independence Day. The Department of Financial Services, Ministry of Finance, is busy shaping the ‘Sampoorn Vittiyea Samaveshan (SVS)’ (Comprehensive Financial Inclusion) scheme in consultation with bankers. Anyone closely associated with the financial inclusion space will worry that without very… 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

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 – 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