Chairman of the 14th Finance Commission and former RBI Governor Y. V. Reddy on Tuesday said financial inclusion is a means and not the end for economic development and other aspects of progress.
Addressing Insurance Awareness Day, which Insurance Regulatory and Development Authority of India (IRDAI) organises to commemorate its formation, he said lessons of global financial crisis should not be forgotten.
“Financialisation in excess doses can be injurious to health,” he cautioned.
While financial inclusion is an important policy, it would be useful to demarcate the roles of government and the central bank towards achieving the objective, he added.
On the occasion, Dr. Reddy presented awards to winners of competitions organised as part of the day and launched consumer education material prepared by the IRDAI.
He urged the insurance regulator to consider realigning its call centre as a query centre providing generic information round the clock in regional languages to promote financial literacy.
IRDAI Chairman T.S. Vijayan, speaking to presspersons, said the insurance industry would do well in the current fiscal since the monsoon was expected to be good.
The former governor of RBI calls for demarcation roles of govt., central bank