FM asks banks to use tech for financial inclusion

Union finance minister Pranab Mukherjee on Sunday asked banks to take the help of modern technology in order to achieve their financial inclusion goals.

Union finance minister Pranab Mukherjee on Sunday asked banks to take the help of modern technology in order to achieve their financial inclusion goals. The reason for this,as cited by the FM,is that inclusive economic growth is a must for achieving sustainable economic development.

Addressing a gathering on the occasion of World Premiere-Technology in Concert,organised by State Bank of India (SBI) in Mumbai on Sunday,Mukherjee said that Banks today need to leverage modern technologies like internet,mobile,smart cards,biometric authentications in their efforts to provide banking and financial services to the rural populace and thereby create hitherto unprecedented economic opportunities.

The FM urged the banks to come together to hasten this process such that financial inclusion can also help the government reach the benefits of the government social security efforts and NREGA payments to the rural poor directly through the banking system,thus reducing the time,transaction cost and leakages in the system. The event was held by the SBI to celebrate the successful completion of SBI First,which is the worlds largest core banking technology implementation.

It is my firm belief that inclusive economic growth is crucial for achieving sustainable economic development. As you may be aware,over half of the 9 crore farmer households in the country today still do not have access to credit either from institutional or non-institutional sources,said the FM. Therefore,financial inclusion and the extension of financial services to every citizen of the country is a priority for the government, said Mukherjee.