The Reserve Bank of India (RBI) has asked all the domestic commercial banks to draw up a financial inclusion plan, duly approved by the bank?s board for rolling out in the next three years. RBI has specifically mentioned that the technology solutions adopted by the banks should be unique identity project (UID) compatible.
?We expect that the UID project, when linked to the banking system, would help facilitate financial inclusion in a big way, said Deepali Pant Joshi, chief general manager (rural planning & credit department) of RBI, while addressing third annual payment systems summit organised by the Indian Banks? Association (IBA) in Mumbai on Friday.
Joshi explained that UID-enabled micropayments would help banks address the challenges that the poor face in access and banks face in cost and service delivery. Such a micropayment solution would require existence of no-frills bank accounts with minimal operating costs and central payment switch that can handle a high volume of small transactions at low costs.
?This is already in place as banks have started opening no-frills accounts and NPCI act as an apex switch for all payments and settlements. Once the UID number is in place, banks would be able to create UID enabled, no-frills bank accounts,?? said Joshi.
To improve banking penetration in the north-east, the RBI has also asked the state governments and banks to identify centres where there is a need for setting up either full-fledged branches or those offering forex facilities, handling government business or for meeting currency requirements.