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Financial inclusion necessary for sustainable growth: Rajan

Hyderabad: Pitching for financial inclusion, RBI Governor Raghuram Rajan on Monday said the central bank is trying to make it attractive for institutions to offer banking services to everyone, as it is a necessary building block for sustainable growth.

Observing that bankers usually focus on large borrowers with bottomline in mind, the governor said Aadhaar Enabled Payment System will go a long way in taking financial services to the underserved.

“After all, should we not give everyone access to the (banking) services we all in this room enjoy?” Rajan said in an interactive session at the National Institute of Rural Development and Panchayati Raj.

Stating that imperative for financial inclusion is both, moral as well as one based on economic efficiency, Rajan said if everyone had the tools and resources to better themselves, it would increase output, growth and economic prosperity.

“In the foreseeable future, we will bring formal financial services to every Indian who wants them. Financial inclusion will be an important element in ensuring access and equity - the necessary building blocks for sustainable growth of our country,” he said.

The country has come a long way in the process of financial inclusion, Rajan said, but “still has a way to go”.

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No plans to pen a book: Rajan

The Goan Network
Published Jul 18, 2016, 12:00 AM IST
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Mumbai: Outgoing RBI Governor Raghuram Rajan, known for his outspoken ways, has no “immediate plans” to write a tell-all book on his experience as the central bank head, unlike his predecessor D Subbarao whose quite revealing memoir has just come out. Rajan, who was accused by critics of keeping interest rates too high and was often seen as being critical of the government and its policies, making his tenure full of several controversies, said he rather plans to write on…

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