Economic Times Financial Inclusion
India enjoys a credible track record of robust banking practices & being a prominent member of BRICS countries enjoys a joyous trust with all its investors. However, of late, several private financial institutions especially the NBFC’s have expanded their reach to cover larger territories in both the urban and rural market segments. It is in this regard that the Government of India, under the aegis of the Reserve Bank of India has decided to offer new banking licenses to private as well as Government organizations as part of the banking reforms processes.
With banking reforms to take place in the coming year, the entire banking industry is about to undergo a sea-change. The banking eco-system is bound to get a fillip with best practices from the new private financial institutions. Rural penetration by the new players will lead to the SMEs getting micro-credit easily with options from a wider range of banks. With financial inclusion as the key focus area for the Government, these new banks are likely to offer more than just banking services as other products like insurance, mutual-funds, gold loans; micro-credit, etc. should reach farflung sub-urban as well as rural areas. The transformation from a private player to a public entity is bound to have plentiful challenges enforcing the institutions to be well equipped in advance to mitigate the risks & welcome the opportunities. With such wide-ranging changes in the banking industry about to take place, the stage is set for an immense transformation in the business outlook for most industrial sectors, social upliftment opportunities for not only ‘India’ but ‘Bharat’ as well.