PATNA: Experts participating at Bihar FINEXE 2010 here on Wednesday stressed that with a 11 per cent GDP rate and a huge public investment, Bihar needs steady supply of finance for which financial inclusion of the people even in the remotest villages is required with a proactive role of banks.
Financial inclusion would generate untapped savings of the people for the healthy growth of an economically resurgent Bihar, experts stated at a conference and exhibition on “Banking, Insurance, Capital Markets and Mutual Funds for Financial Inclusion and Growth” organised by the Confederation of Indian Industries (CII), Bihar State.
Financial inclusion entails opening bank accounts of the people with the banks communicating clearly about the financial products best suited to the people in the respective urban and rural areas for an appropriate investments of their savings, experts said.
Principal secretary, industry, C K Mishra, said the condition of the people in the remote rural area would improve with their financial inclusion. Mishra said the attitudinal change in the economic scenario in Bihar brought out by a huge public investment by the government had made a base for the private investments.
“Banks should come up with financial support to private investors because if the trade and industry lose, the banks, too, would be the losers. Despite increase in deposits in the banks in Bihar, the lending from the banks had not covered the entire state. The credit-deposit gap has to be filled up by the banks,” Mishra said.
CII, Bihar, chairman Satyajeet Kumar Singh, said a well developed network of banks, NBFCs, insurance and mutual fund investors and a strong capital market must be developed in Bihar to convert people’s savings into safe investments. This entire exercise would create fund for inclusive growth of the poor through their financial inclusion for which the banks have to apply appropriate technology, including the information technology (IT). With this there would be business for livelihood in urban and rural areas, he said.
Speaking on behalf of the RBI regional director, RBI AGM Gyaneshwar Pathak, said the banks should break the psychological barrier of the account holders in the remote villages by informing them about financial products best suited for investment. He said 100 per cent financial inclusion had been attained in 10 of the 38 districts in Bihar. The RBI has requested the banks to resort to overdraft for opening accounts of the poor people, he said. He said the Central Bank of India had already provided smart cards to 5.56 lakh account holders who are mostly the job card holders under Mahatma Gandhi National Rural Employment Scheme.
Read more: State needs steady supply of finances: Experts – The Times of India http://timesofindia.indiatimes.com/city/patna/State-needs-steady-supply-of-finances-Experts/articleshow/7147192.cms#ixzz18xuG6e7w