Jan Dhan Yojana a game changer, says RBI

The Reserve Bank of India (RBI) Deputy Governor Urjit Patel said that ‘Jan Dhan Yojana’ scheme implemented by public sector banks, whereby 100 million bank accounts have been opened for those who were un-banked, is unequivocally a “game-changer.”

“It provides an unprecedented scaffolding and a spring board for meaningful financial inclusion and, concomitantly, substantial financial deepening of our economy,” said Dr. Patel at an award function, here.

The award was presented to Welingkar Institute of Management Development and Research, Mumbai.

Citing the discussion at the ‘Gyan Sangam’, gathering of bankers and top-level policy makers in Pune, recently, Dr. Patel said: “We should redefine the metric for effective lending and prioritise loans to enterprises, which will generate more employment.”

In other words, he said “bankable labour-intensive enterprises should benefit as we go forward in this direction.”

According to him this would benefit, a much larger number of small business loans.

He said that the hard earned macroeconomic stability provides an important backdrop for optimal decisions by all stakeholders.

“We have to preserve this. The dramatic fall in oil prices is a boon for us. It saves, on an annualised basis, around $50 billion roughly, one-third of our annual gross POL imports of about $160 billion. Of course, there will be leakages and other set-offs,” he added.

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