Role Of Commercial Banks On A Part Of Financial Inclusion...

Following are the role of commercial banks to be performed as part of financial inclusion programme: a) Financial literacy b) Credit counselling c) BC/BF model d) KYC norms e) KCC/GCC f) No-frill accounts financial literacy g) Branch expansion, h) Mobile banking, and i) Other measures. a) Financial literacy: Providing financial literacy is the essential function of financial inclusion, as the main cause for exclusion is the lack knowledge about formal financial system. Financial literacy states to knowledge prerequisite for managing personal finance. The eventual goalmouth is empowerment of people to take action by them that are in their self-interest. When the people know about the financial products available and when they are able to†¦show more content†¦In case of curative counselling the credit counselling centre will work out individual debt management plans for determining the unmanageable debt portfolio of the clients by working out effective debt restructuring plan in discussion with branch of the bank, taking into account income level and size of the loans. c) BC/BF model: With an exertion to emphasis commercial banks, to reach rural household and farm household, banks were permitted to use infrastructure of civil society organizations, rural kiosks, and adopt Business Correspondent (BC) and Business Facilitator (BF) models for providing financial services. RBI has operators and agents of small saving schemes of government of India/Insurance companies, retired and authorized functionaries of well-run SHGs linked to banks as BCs. â€Å"In January 2006 RBI permitted to utilize the services of NGOs, SHGs, MFIs and other civil society organizations as intermediaries in providing finance and banking services through BF and BC which is known as â€Å"Agency model†. (This allows banks to do ‘cash in cash out’ transactions at a location closer to rural population and facilitate greater financial inclusion and income)† The type of services of Business Facilitator is: a) Identification of borrowers and fitment activities. b) Creation of awareness of savings and other products. c) Collection and preliminary process of loan application. d) Processing andShow MoreRelatedResearch Study On Vijaya Bank Essay1084 Words   |  5 Pagesthe course of study found that Vijaya Bank offer various type of product and services to its customer. †¢ The Bank has won many awards in the past years for its operational areas and overall best performance. †¢ The RBI and Government are provided various schemes under financial inclusion program. †¢ As per RBI guideline every bank will offer no frill account and various service and awareness program to promote financial inclusion program. †¢ The Vijaya Bank provides various services like BusinessRead Moreâ€Å"Role of Government in Financial Inclusion†4322 Words   |  18 PagesA RESEARCH PAPER ON â€Å"ROLE OF GOVERNMENT IN FINANCIAL INCLUSION† Submitted By: Hemali Shah (MPM: 2nd Semester) ABSTRACT: Financial inclusion means a group of people should take part in growth activities and help to increase economic growth of the country. 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