Co-op banks have vital role in financial inclusion

Co-operative banks can play a more proactive role than scheduled commercial banks (SCBs) in achieving financial inclusion, a senior Reserve Bank of India official said on Saturday.

“The role of co-operative banks is very important in the real last-mile financial inclusion. They can play a greater role than scheduled commercial banks in achieving the goals of financial inclusion,” Reserve Bank's General Manager (Urban Co-operative Banks Department), Uma Shankar, said at a seminar here.

“You (co-operative banks) people are playing a larger role for the grassroots community and you know better how we can achieve the goals of financial inclusion,” Ms. Shankar said.

“Your (co-operative banks) support is required so as to help people participate actively in the financial inclusion programme,” she said.

She advised co-operative banks to use advanced technology and recruit more efficient people to compete with commercial banks. “You need to use advanced technology for competing with commercial banks,” she said.