Panel to look into woes of weaker sections

The government has constituted a 10-member committee headed by Dr C Rangarajan, chairman of the Prime Minister's Economic Advisory Council, to prepare a strategy on "financial inclusion". The committee has been asked to submit its report by November 30.

The committee has to prepare a strategy for extending financial services to small and marginal farmers, and other vulnerable groups. Besides, it has to come out with measures to streamline and simplify procedures, reduce transaction costs and make the operations transparent.

An official release said the decision to set up the committee had been prompted by the government's concern over the fact that despite the vast expansion, modernisation and diversification of ownership of financial institutions, a large number of vulnerable groups remain excluded from the opportunities and services provided by the financial sector.

The committee will also suggest measures, including institutional changes to be undertaken by the financial sector, to implement the proposed strategy of financial inclusion.

Moreover, it has to propose a monitoring mechanism to assess the quality and quantum of financial inclusion, including indicators for assessing progress.

The committee will study the pattern of exclusion regional and gender exclusion from financial services.

The committee will also review the international experience in implementing policies for financial inclusion and examine their relevance and applicability to India.

Some of the other members of the committee include Vinod Rai, special secretary, Ministry of Finance, Dr Rohini Nayyar, adviser, rural development, MBN Rao, CMD, Canara Bank and Yogesh Agarwal, MD, State Bank of Patiala.