The new government has started an ambitious financial inclusion plan that aims to bring every household under the banking net by 26th January 2015. Financial inclusion has been a buzzword for quite some time.
The Indian banking is undergoing through some unusual structural changes and naturally the news has been making round about one of those, which is 'differentiated banks'. As widely reported and circulated, the RBI Governor Raghuram Rajan is a firm believer in the ideas behind it, and thus the central bank's guidelines come so hands-on this, it leaves no chance unturned to make the keen watcher believe, these new institutions will end all ill in existing system at place.
Ever since we started our initiatives on financial inclusion, it was crystal clear that financial inclusion without poverty alleviation is a meaningless exercise. If that be the case, the next question is how to attain the goal at the earliest and at the lowest possible cost. Here, I must say that the three things-social inclusion, financial inclusion and digital inclusion-are inter-linked, and if one is missing, the other two cannot happen. Incidentally, most of the flaws that I pointed out in my book titled Speeding Financial Inclusion (2009), eventually came true during the course of implementation of the financial inclusion initiative including the Swabhimaan scheme in 2011. Some of the mistakes are being repeated as the Jan Dhan is being rolled out.