Financial Inclussion the need of fthe hour.

Yes, financial inclusion is the need of the hour. PSBs and Grameenas Banks are already in the direction of adopting some of the villages and include every family in the books of the a bank. At the same time we should also educate them how best they can utilise the local resources/raw materials in the over all developement of village/country. The banks should also take part in the minimum literacy levels in the adopted villages.

We must separate loan proposal generation, loan appraisal, loan recovery and loan sanction functions.  There should be separate R&D wing on all functions.  Innovation should be encouraged in each.  The loan proposal generation department should simply generate proposals.  Online application - either by the prospective borrower, or his well wisher or even a bank officer/employee should be encouraged.  The appraisal wing is a fact finding agency whose priority is to find facts efficiently and quickly.  The sanctions department has to take decisions even if it results in bad loans.  The sanctions department should not be made to worry about halting their increment, cbi enquiry etc.  Even if it results in a bad loan, there should be no persecution of the sanctioning authority.  The recovery department should simply recover - they are not supposed to blame any one.  

The R&D department for each function as above should also function independently.  They should analyse each employee's efficiency not on the outcome of a loan but on the process adopted in discharging the function.  

How do we ensure that one does not speak to other?  Technology can find innovative solutions.  Random allotment of the function to a processing officer is one method.  

If any officer tries to track a particular proposal on his own initiative, he should simply be put on the scanner!!

Innovation, speed, efficiency, justified empathy should all be given weightage in performance appraisal.

We could ensure financial inclusion - whether a borrower is educated or not!!

YES. But this is possible with basic literary level in the poverty stiken individual. I suppose it needs to be inclusive with social literate cooperation.

Krishna Burli

You are right, I fully support this idea.

I do support for the same. Infact this is the need of today's enviroment. inancial inclusion stems back from Raguraman committee sometimes in 2008. That time concept of LABs was introduced but did not materialize fully. Now again the concept is gaining momentum and it iseems that it is very much important step in uplifting the rural economy where the focus of today's government is.

I support