 "RBI DG Swaminathan Janakiraman")
Having achieved success in improving access to banking services, there is a need to improve the usage of facilities, Reserve Bank Deputy Governor Swaminathan J has said.
The career commercial banker-turned-central banker exhorted bank officials to know their districts very well in the pursuit of the aim.
"India has made significant strides in enhancing 'access' to banking and financial services, reaching even the most remote areas. However, there is still considerable ground to cover in deepening financial inclusion. This requires greater focus on promoting 'usage' and improving the 'quality' of services," he said.
Addressing the Conference of Lead District Managers and District Development Managers in Hubballi last Friday, Swaminathan said it is imperative for bankers to follow the maxim of "know your district well" by having a deep understanding.
The district profiles should include detailed demographic information, agricultural trends, banking penetration and activities, industrial profiles, and the various performance metrics under the Annual Credit Plans, he said.
Bankers should use data analytics and field surveys to gain insights into economic activities, local credit needs, and barriers to credit access, he added.
More From This Section
 "Gold loan, gold, IIFL, gold jewellery")
 "FDI dollar currency cash")
 "Nirmala Sitharaman, Nirmala, Finance Minister")
 "Rs, Rupee, Indian Currency")
 "SBI, State Bank Of India")
"A holistic understanding of your district will enable you to identify gaps in financial inclusion, assess the credit needs of different sectors, and design targeted strategies for intervention. It will also help you to identify the root causes of the various issues observed in your districts," he told the bankers.
The sound understanding of a district by a banker should lead to a granular bottom-up approach on creating a credit plan, he said.
"By staying attuned to your districts, you can provide invaluable feedback to the SLBCs, enabling the formulation of targeted and effective credit plans, and fostering sustainable economic growth and development," he said.
Swaminathan also said that 354 districts are now digitally enabled and ten states, including Karnataka and six Union Territories, have achieved 100 per cent coverage of districts under an initiative to make every district digitally enabled.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
 "Loan, Money, Economy")
 "The July Budget made two changes in the treatment of gold that affect investment portfolios. The reduction in import duties to 6 per cent from 15 per cent in the latest Budget lowers input costs for jewellers and compresses margins for smugglers. The")
 "Piyush Goyal, Piyush")
 "SBI")
 "Just how many self-regulatory organisations (SROs) are too many? Last week, the Reserve Bank of India (RBI) capped the number of such entities for non-banking financial companies (NBFCs) at “a maximum of two”. And to ensure the smaller NBFCs get a fa")
