Business Line : Industry & Economy / Banking : Financial inclusion: Banks made some headway in 2010-11
The twin concepts of Microfinancing and Financial Inclusion emerged on the Indian banking scene in a big way during the middle of the previous decade ie., around 2005-6. In fact, Lead Bank Scheme and Service Area Scheme were already in existence since 1969 / 1988. Much before, the very formation of SBI in 1955 from out of the earlier Imperial Bank of India was with a mandate of opening rural branches.
It was followed by two bank nationalisations in 1969 and 1980 adding 20 more banks to the Public Sector comprising of SBI and its seven subsidiaries. The Indian Banking system lived up to the dictum of the RBI and Government in going rural and lending as per Priority Sector norms at administered rates of interest for decades. And suddenly, in 1991-93, come economic reforms also affecting the banking sector. On the other hand, Financial Exclusion in the beginning and later termed as Inclusion has come on the scene with pressure on banks to open more and more rural branches and open no frills accounts. Hopefully, in a year or two, the total branches would touch one lac figure!
The twin concepts of Microfinancing and Financial Inclusion emerged on the Indian banking scene in a big way during the middle of the previous decade ie., around 2005-6. In fact, Lead Bank Scheme and Service Area Scheme were already in existence since 1969 / 1988. Much before, the very formation of SBI in 1955 from out of the earlier Imperial Bank of India was with a mandate of opening rural branches.
It was followed by two bank nationalisations in 1969 and 1980 adding 20 more banks to the Public Sector comprising of SBI and its seven subsidiaries. The Indian Banking system lived up to the dictum of the RBI and Government in going rural and lending as per Priority Sector norms at administered rates of interest for decades. And suddenly, in 1991-93, come economic reforms also affecting the banking sector. On the other hand, Financial Exclusion in the beginning and later termed as Inclusion has come on the scene with pressure on banks to open more and more rural branches and open no frills accounts. Hopefully, in a year or two, the total branches would touch one lac figure!
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