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18
magis
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february 2014
Inclusive
Finance
For
Excluded
poor
I
f fradulent
microfinance
companies are the market’s problem
child then financial inclusion of poor
could be the much needed solution of
the hour.
Making this neglected concern the cen-
ter of discussion at the International Work-
shop on Inclusive Finance XLRI attempts
to generate rich ideas for the poor.
The three-day workshop brought
together academics, practitioners, micro-fi-
nance institutions and NGOs to brainstorm
on Making Finance and Insurance Markets
Work for the Poor. The focus of the meet
was to find ways to make finance reach the
poorest of the poor and prevent fraud chit
funds from milking the needy.
At the inaugural session, Chairperson
of National Commission on Farmers YC
Nanda said, “Reaching financial services to
all the sectors, particularly agriculture and
rural areas, has been a major concern for
the policy makers for long.”
“The development of an elaborate
co-operative banking system — with over
a hundred thousand primary coopera-
tive societies at the village level — social
control and later, nationalisation of banks,
establishment of nearly 300 regional
rural banks, tremendous expansion in the
number of rural branches, setting priority
sector targets with sub-targets for agricul-
ture credit, direct agriculture credit, loans
to weaker sections were all part of state-led
approach with focus on access to credit,”
he pointed out.
Nanda added, “Results have been mixed.
There is still a strong possibility that the
financial system may reach a level of inclu-
sion in none too distant future which would
be adequate for the immediate purpose of
introducing DBT (Direct Benefit Transfer)
in the country.”
XLRI director Fr E Abraham S.J. said,
“Access to finance should be universal;
in today’s modernised economy, this has
Knowledge Works
The focus of the meet
was to find ways to
make finance reach
the needy and prevent
fraud chit funds from
milking them
Chairperson of National Commission on Farmers YC Nanda lights the inaugural lamp
while Director, XLRI, Fr E Abraham S.J. (Centre) and Prof HK Pradhan look on
