RBI yet to take call on Mor committee on financial inclusion

Proposes simplified KYC procedures for poor

geetanjali

Geetanjali Minhas | February 12, 2014



Admitting that financial inclusion is a tall order for the country, Reserve Bank of India (RBI) governor Raghuram Rajan, however, did not commit on implementation of Nachiket Mor committee. Last month, the committee gave slew of measures on boosting the financial inclusion.

The central bank is yet to take a call on implementation of the Mor panel, he said on the sidelines of the Nasscom India Leadership Forum 2014 in Mumbai on Wednesday.

On the question of the Mor committee’s recommendation on ‘payment banks’, the RBI governor said, “At this point there is no decision to move forward. We will look at it in great detail, including what value it brings, the viability as well as whether it presents arbitrage opportunities vis-a-vis the schedule commercial banks.” The Mor committee suggested about setting up of ‘payment banks’ with an initial capital of Rs 50 crore, whose purpose was to deepen access of finance, especially in the case of small businesses.

Mor panel had earlier recommended for a bank extension within 15 minute walking distance for a citizen across the country.

However, Rajan admitted that much needs to be done in reaching to the unbanked areas of the country. He advocated easing of know your customer (KYC) norms. “It is very essential to get the poor to put aside some money no matter how difficult it is. The KYC, norms is a regulatory requirement however experts have suggested minimising these requirements as today stringent KYC norms are keeping many out of the banking fold,” said RBI governor.

Rajan also proposed standardised and simplified procedures for registration and authentication of customers for mobile banking services and creating awareness programmes across banks for generating customer services along with SMS services and USB technology. The RBI governor also added that the regulatory mechanism for mobile base and expansion is already in place.

On virtual currencies, he underlined concern about the alternative currencies like Bitcoins. “As a currency I do worry a little bit when the underlying values fluctuate tremendously. One of the values of a currency is stability. Who will maintain value - can we have confidence in an unseen, unknown centre which will maintain the value of the currency or an algorithm which will maintain the value of the currency,” Rajan said.

He added that RBI is currently studying the issue and will come out with a "considered view" on it soon.

Comments

 

Other News

BMC: 207 officials in ACB net, 112 still on duty, 68 retire before justice catches up

There are significant delays in the handling of corruption cases involving officials of the Brihanmumbai Municipal Corporation (BMC), a Right to Information (RTI) response obtained by rights activist Jeetendra Ghadge has revealed. As of 30 April 2026, 207 BMC officials face Anti-Corruption Bureau (A

The transformation trap: Why efficiency is not innovation

Every company is transforming, or so it claims.   There was a time when the word ‘transformation’ carried weight. It signified bold strategic shifts, reinvention of business models, and breakthrough technologies that fundamentally changed how organizations created

The Sardar biography that throws light on our times

Patel: A Life By Rajmohan Gandhi Aleph Books, 568 pages, Rs 1,199   There are many biographi

Climate change, El Niño rewrite Indian monsoon

The month of July exceeded its rainfall target despite forecasts of a below-normal month under a strengthening El Niño. The reason could be that climate change is amplifying monsoon complexity: West Pacific warming, Western Disturbances and evolving ocean conditions increasingly interact with El Ni&

Mumbai has just 1.28 sq.m. of open space per person: Study

Mumbai`s public space crisis is as much about mismanagement as it is about scarcity, and offers a governance roadmap that can be implemented without new legislation, according to a new report by the Urban Design Research Institute (UDRI) and the NGO Alliance for Governance and Renewal (NAGAR).  

Lok Sabha passes amendment bill to improve public examination system

The Lok Sabha on Wednesday passed the Public Examinations (Prevention of Unfair Means) Amendment Bill, 2026 by a voice vote after an extensive discussion. Replying to the debate, minister of state (independent charge) for science & technology; earth sciences and MoS in the PMO, Dr. Jite

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter