Tag Archive | Financial Inclusion

MGNREGS includes Rural Sanitation Now

The scope and reach of the UPA flagship programme MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme) was extended to benefit more households in the rural areas. In a series of decisions, the government has subsumed the development tasks, from various other schemes, under MGNREGS.

UPA government widened the scope of MGNREGS to include works relating to rural sanitation in collaboration with the Nirmal Bharat Abhiyan (NBA). It is expected that this would strengthen the base of rural livelihood and create durable assets and infrastructure at village level. The provision has been provided in the Para 4(1) IV(i) of the Schedule I of the MGNREG Act. Read More…

White Label ATM: An Analysis

White Label ATM or White Label Automated Teller Machines or WLAs in India will be owned and operated by Non Bank entities. It is customer’s friendly and they can withdraw money from any bank, but will need to pay a fee for the services. These white label automated teller machines (ATMs) will not display logo of any particular bank and are likely to be located in nontraditional places.

Reserve Bank of India has authorized three non-banking entities for setting up white label ATMs with a view to increase financial inclusion. Certificates of authorization has been issued to BTI Payments Pvt Ltd, Srei Infrastructure Finance Ltd, and RiddiSiddhi Bullions Ltd.

The concept of White Label ATMs are very popular in Canada. From 2006 , few banks in India trying to introduce WLA through RBI. Read More…

Relevance of G-20 for Development

The later half of the 1990s had witnessed sea changes in the global power politics. While the US remained the dominant power, there emerged many economic power, from the global South, like China and India. The subsequent East Asian Financial Crisis of 1997 highlighted the need for greater economic cooperation between the developed and developing countries. A number of multilateral forums were established to initiate an informal dialogue between the different countries.

The Finance Ministers and Central Bank governors of the Group of Eight (G-8) announced the their intention to broaden the dialogue on key economic and financial policy issues among the systematically important economies, and to achieve stable and sustainable world economic growth that benefits all. This gave birth to the G-8, which comprised of countries like- USA, UK, France, Germany, Italy, Japan, Canada and Russia.

These 8 countries were later joined by 11 emerging and developing countries, namely- Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Saudi Arabia, South Korea, South Africa and Turkey, along with the European Union to form the G-20. Read More…

A Glossary of Terms Related Indian Stock Market



A Broker is a registered member of a stock exchange, who buys or sells shares and securities on his clients’ behalf and charges a commission. Such broker are called Commission Brokers.

There are also brokers who offer services, like investment advise, client’s portfolio planning, credit when a client is buying on margin, and similar services, which are different from their traditional commission based jobs. Such brokers are called Full Service Brokers.


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Financial Stability Report (FSR) of RBI

RBI recently released the 9th edition of its Financial Stability Report (FSR), which is a bi-monthly publication, reflecting the collective assessment of an expert sub-committee on risks to financial stability. The publication of the report is a good practice, being followed all over the world.

The recent FSR aims to promote awareness about the vulnerabilities in the financial system. The report also seek to examine the resilience of the financial institutions, and to encourage a debate on the development and regulation of the financial sector.

The Government as well as RBI has also been discussing these issues at higher levels. For instance, the issue of Bank Governance has been dealt with extensively by the P. J. Nayak Committee. Read More…

14th Finance Commission: Some Challenges

The Constitution provides for a Finance Commission under Article 280, in order to facilitate the mechanism of transfer of funds and resources between the Centre and states. The Finance Commission is to address the vertical imbalance- between Centre and states- as well as the horizontal imbalances- the one between the states with varying degree of fiscal capability but similar responsibilities.

The 14th Finance Commission was announced in 2013, with Y. V. Reddy as its Chairman. It’s recommendations would be applied for the period 2015-16 to 2019-20.

An important issue, which has given birth to several debates, is the growing dominance of the centre at the cost of the autonomy of the states. Read More…

Financial Inclusion of North-East India

North-East India

Financial Inclusion refers to the provision of financial services to the people of the lower strata of society. India has a large disparity in socio-economic growth. To bridge the existing disparity, the Reserve Bank of India (RBI) set up the Khan Committee to look over the issue of financial inclusion. The recommendations of the Khan committee were incorporated in the RBI policy 2005-06.

RBI has directed all the banks to facilitate opening of no frills saving bank account with zero or nominal balance to lower income customers. This was done to ensure the financial inclusion to a greater extent in India.

In 2013, India’s first Financial Inclusion Index, called- CRISIL INCLUSIX was launched. The index is a scale of 0-100 with branch, deposit and credit penetration as the parameters of the index. CRISIL Inclusix used data from 2 lakh data points and 165 banks. The index has been started with banking services presently and has the provisions for extension to other services.

Status of North-East States in Financial Inclusion

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