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Financial Inclusion- News and Views - September 2015

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September 2015

 

India’s financial inclusion mission has received another big boost. After the success of the PMJDY last year in increasing accounts at the household level, creating significant awareness amongst the poor and unbanked for banking and introducing insurance and pension schemes for the poor, new banks are now in the sector to provide services to low income customers. Last month the RBI granted in-principle approvals to 11 non-banks as Payments Banks, and approvals for Small Finance Banks are expected to come through soon. This month our editorial picks on this new move are - Game Changers, by Daniel Radcliffe, BMGF; The payments banks revolution by Sumita Kale, ICFI, and Did India’s Central Bank get Payments Bank Approvals Right? by Kabir Kumar and Anand Raman, CGAP

Apart from the forthcoming differentiated banks, a new full-service bank, Bandhan Bank started operations last month, the first MFI to become a bank in India. The second new full-service bank, IDFC is slated to begin work next month. As existing banks are partnering or looking to partner with the new differentiated banks, there are significant opportunities ahead for meeting the financial needs of the poor and the hitherto excluded.

Even as the banking sector sees new vigour, the government’s Direct Benefits Transfer programme received a setback with the Supreme Court issuing a four-point interim order- the issue of “right to privacy” has been referred to a larger Constitutional Bench, the use of Aadhaar has been restricted to two schemes of PDS (Public Distribution System) and LPG subsidy only and the government must publicize the point that it is not mandatory to have the card. A Financial Express Editorial: Confusing Aadhaar signals made the succinct point that a voluntary Aadhaar defeats the purpose of a unique identifier, and suggested a time frame be set by the Supreme Court to ensure universal coverage and seeding. S V Divvaakar of Indicus Centre for Financial Inclusion has examined the Supreme Court judgement in detail in his piece, Which comes first: identity or privacy?

Research

Direct Benefits Transfers: An Update
Policy Brief June, 2015

Digital Financial Inclusion: Agenda for India
Policy Brief March, 2015

Global Lessons on Partnerships for Financial Inclusion
Policy Brief January 2015

In the Media

The payments banks revolution
Mint, 24 August 2015

Which comes first: identity or privacy?
THE HINDU BusinessLine, 18 August 2015

The last mile in direct benefits transfer
Mint, 01 June 2015

Blogs

Digital transactions on the uptrend
Tracking progress in financial inclusion
Direct Benefit Transfers - A short update

Section I: Policy – the latest from India’s policymakers

Disruptive Innovation and Inclusive Growth – Some Random Thoughts
R. Gandhi, Deputy Governor, Reserve Bank of India, August 25, 2015

Financial Market Regulation in India – Looking Back, Looking Ahead
Harun R. Khan, Deputy Governor, Reserve Bank of India, August 17, 2015

Strong Sustainable Growth for the Indian Economy
Raghuram Rajan, Governor, Reserve Bank of India, August 24, 2015

Financing for Infrastructure: Current Issues & Emerging Challenges
Harun R Khan, Deputy Governor, Reserve Bank of India, August 8, 2015

Notifications:

Cash Withdrawal at Point-of-Sale (POS) - Enhanced limit at Tier III to VI Centres
Trend of Zero balance accounts under PMJDY 
Pradhan Mantri Jan - Dhan Yojana (Accounts Opened As on 26.08.2015)
Scheme for Overdraft (OD) upto Rs.5000/- under PMJDY- Non-mandatory of Aadhaar Seeding
Framework to be followed by all Ministries/Departments for bringing all schemes involving components of cash transfers to individual beneficiaries on DBT platform
W. P (C) No. 37/2015 tagged with W. P. (C) 494/2012 - Adherence of the interim orders of Hon'ble Supreme Court
W. P (C) No. 37/2015 tagged with W. P. (C) 494/2012 - Adherence of the interim orders of Hon'ble Supreme Court
W. P (C) No. 37/2015 tagged with W. P. (C) 494/2012 - Adherence of the interim orders of Hon'ble Supreme Court
Section 23 of the Banking Regulation Act, 1949 - Relaxations in Branch Authorisation Policy

Section II: News and Views Digest – the latest from India and abroad

India

India joins UN digital payments partnership
SBI expects Jan-Dhan accounts to break even in 2016
Banks seek timely payment of commission on DBT transfer
Banking's new frontier
Bandhan Becomes India's Youngest Bank
Payments banks: NPCI to ramp up capacity to 100 million deals a day 
Changing the Game
The Race Begins: Payment Bank Licenses
Game Changers
India ranks 9th in Brookings financial inclusion scorecard
Mann Ki Baat: PM Modi highlights programmes of financial inclusion
Can banks see profit in financial inclusion?
'Call drops will hit financial inclusion'
The extent of India's financial exclusion is staggering
MobiKwik and StoreKing bring financial inclusion to rural India
'Conventional Banking is For Rich, Poor Need New System'
Payments banks will offer services at lower costs: Rishi Gupta

International

How Speed Dating Led to Progress on Digital Finance in Tunisia
Payment Innovations in Turkey: Not (Yet) Reaching the Unbanked
Gaining Insights into Digital Design from Cambodia’s Smallholders
Partnership: Missing Ingredient to Mobile Money APIs
Turkish Banks at the Forefront of MSME Lending, but Gaps Remain
Fixing the Hidden Charges in Lipa na M-Pesa
A Multi-Digit Divide? Building Basic Financial Numeracy
Merchants and Agents: Apples and Oranges?
Supervisor’s Experience with Expanding Agent Networks: 4 Insights

Section III: Research – surveys and studies on expanding access to financial services

Jansuraksha: India’s New Tryst with Mass Insurance
Premasis Mukherjee, MicroSave, August 20, 2015
Customers’ Views on Customer Empowerment Cote d’Ivoire Field Interview
Corinne Riquet and Moussa Fofana, CGAP, August 17, 2015
Customer Views of Customer Empowerment Synthesis Report
Anton Simanowitz, CGAP, August 17, 2015
Supervision of Banks and Nonbanks Operating through Agents
Denise Dias, Stefan Staschen and Wameek Noor, CGAP, August 4, 2015

The monthly newsletter from the Indicus Centre for Financial Inclusion documents the latest news and views in the financial inclusion space, to provide a knowledge base that will help build understanding around how to accelerate the poor’s access to high-quality financial services. Editor: Sumita Kale can be contacted at sumita@indicus.net. The Indicus Centre for Financial Inclusion was launched in 2011 to distil and disseminate information on accelerating the poor’s access to high-quality financial services. The Centre is supported by the Bill & Melinda Gates Foundation. http://www.indicus.net/icfi

© Indicus Centre for Financial Inclusion. All rights reserved. 31st August 2015

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