Fin inclusion panel submits report to FM

To expedite the process of financial inclusion, public sector banks today agreed to open at least 250 new accounts in each branch every year, as recommended by the Rangarajan Committee in its report submitted to the government today.

In its final report given to Finance Minister P Chidambaram today, the Committee on Financial Inclusion, headed by the Chairman of Prime Minister's Economic Advisory Council C Rangarajan, suggested that each branch PSU banks should open 250 new accounts every year.

Disclosing this, Chidambaram said it meant that 12.5 million accounts would be opened each year, given the current strength of 50,000 branches in the country.

All this has been conveyed to banks' chairpersons. They have said opening 250 accounts every year in every branch of banks is not difficult, they will try to implement that recommendation," the Finance Minister told reporters after holding quarterly review meeting with PSU bankers.

The committee also recommended that individuals should be appointed as banking correspondents, he said.

Currently, only non-government organisations and micro-finance institutions could be appointed as banking correspondents as per RBI norms.