RBI sets up panel for action plan on financial inclusion

The Reserve Bank has set up a committee to work out a five-year action plan to spread the reach of financial services to unbanked population.
The 14-member panel, to be headed by RBI executive director Deepak Mohanty, will review the existing policy of financial inclusion, including supportive payment system and customer protection framework taking into account the recommendations made by various committees set up earlier.
In order to promote financial inclusion, the government launched Jan Dhan initiative in August last year.
On the occasion of RBI's 80th anniversary, the Prime Minister urged the central bank to take the lead in encouraging financial institutions and set a medium-to-long term target for sustainable financial inclusion, RBI said in a statement.

The objective of the panel is to work out a medium-term or five-year measurable action plan for financial inclusion.
As per the terms of reference, the committee will suggest a monitorable medium-term action plan for financial inclusion in terms of its various components like payments, deposit, credit, social security transfers, pension and insurance.
Besides, it would articulate the underlying policy and institutional framework, also covering consumer protection and financial literacy, as well as delivery mechanism of financial inclusion encompassing both households and small businesses, with particular emphasis on rural inclusion including group-based credit delivery mechanisms.
The Committee is expected to submit its report in four months from the date of its first meeting.