RBI plans big push for doorstep banking

Speaking at the fourth programme on Human Development and State Finances organised by the College of Agricultural Banking, RBI, UNDP and the Planning Commission here today, Thorat said, 8216;8216;The need is felt for doorstep banking because even with 50,000 rural and semi-urban bank branches in the country, a large number of the rural population continue to remain outside the formal banking system.8217;8217;

One way to do it would be to appoint non-governmental organisations or NBFCs non-banking finance corporations or primary agriculture credit societies as 8216;8216;agents8217;8217; who may disburse small value loans, collect revenue, mobilise savings in areas still untouched by a formal banking system.

Though safeguards will have to be put in place before institutionalising such a concept, Thorat said the move will help bring the huge population lurking outside the formal banking arena into the system. She said the RBI has taken a number of steps to promote financial inclusion, like, exhorting banks to make available a basic banking 8216;no frills8217; account either with nil or minimum balances, simplifying the know-your-customer procedure for opening new accounts with balances not exceeding Rs 50,000 and so on.