Bring unorganised sector in financial inclusion fold: RBI

Written by Banking Bureau | Mumbai, May 30 | Updated: May 31 2008, 06:25am hrs
On Friday, the Reserve Bank of India placed a report of an Internal Working Group set up to examine and to suggest a way forward to implement the recommendations of the report on Conditions of Work and Promotion of Livelihoods in the Unorganised Sector of the National Commission for Enterprises in the unorganised sector, on its website.

The Internal Working Group, in its report, has made recommendations, among other things, to address the issues of credit allocation, expanding the outreach of banking services and improving the access of credit to various segments of population in the unorganised sector.

The National Commission for Enterprises in the unorganised sector highlighted the conditions of work and issues in livelihood promotion and proposed a set of recommendations for the unorganised sector.

It also suggested a package of measures for addressing some of the critical issues relating to farm and non-farm sectors.

It made some observations and recommendations relevant to the Indian financial sector.

During the mid-term review of the Annual Policy 2007-08 (October 2007), it was proposed to constitute an internal working group to study various recommendations of the National

Commission for enterprises in the unorganised sector relevant to the financial system and to suggest an appropriate action plan for implementation of the acceptable recommendations pertaining to banking sector and the Reserve Bank of India.

The Reserve Bank of India constituted the Internal Working Group (IWG) in November 2007.