Financial Inclusion – IT as Enabler

Author: Gupta, Sanjeev Kumar
Publication: Reserve Bank of India Occasional Papers 31, no. 2 (2011)

Abstract: The Indian banking sector today is grappling with the issue of financial inclusion. Operating cost of providing financial inclusion and charges levied on the users are important dimensions of the process of financial inclusion. Technology can play an important role in reducing operating cost of providing banking services, particularly in the rural and unbanked areas. There are technologies that could drive the growth in financial inclusion. Against this backdrop, this paper outlines major steps which have been taken so far by the Reserve Bank and Government of India to enable financial inclusion for weaker sections of Indian society. The efforts made by the Reserve Bank in this direction so far, role of Information and Communications Technology (ICT) with focus on Mobile Banking and finally the Unique Identification (UID) number are discussed in detail in this paper.

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