Financial literacy key to inclusive growth, say experts

Banking facilities are still a distant dream for a majority of the Indians despite the nationalization of banks in 1969 and to make available financial services to the people, the emphasis has to be on financial literacy which is the answer to inclusive growth.

This view was put forth by experts at a workshop on 'Financial Inclusion and Inclusive Growth', organized here by the Centre for Youth and Social Development (CYSD) and Swyamshree Micro-Credit Services (SMCS).

In his keynote address, Kaza Sudhakar, regional director of Reserve Bank of India (RBI)-Bhubaneswar emphasized on the active participation of voluntary organizations to make the Banking Correspondent Policy a success.

He observed that financial inclusion is ensuring timely financial services for the vulnerable groups of the society at affordable costs.

Sudhakar laid stress on financial literacy and highlighted the various aspects of inclusive growth like access to credit, improving human resources, mitigating risks, providing primary health and education, access to natural capital, value addition and organizing various social groups.

He pointed out that the voluntary organizations must come forward to spread awareness on financial services among the masses and stated that this calls for proper coordination among the banks, non-banking financial institutions and the micro-finance institutions.

Speaking on the occasion, C H Narasimha Rao, chief general manager of State Bank of India (SBI)-Bhubaneswar circle said, “SBI’s 635 branches in Orissa are still inadequate to cater to the needs of the people. In order to get banking facilities, people still spend time and money, which obviously discourages them.”

“Proper coordination among various sectors is responsible for facilitating inclusive growth. At the same time, people must have patience and should know their strengths to bring about their development”, he added.

P K Sahoo, chairman, CYSD stressed on the importance of financial inclusion and felt that issues like primary education and food security should be given utmost importance so that a qualitative improvement can be brought in the lives of the underprivileged sections of the society.