RBI panel suggests role for private banks in improving access to credit

A high level committee set up by the Reserve Bank of India has suggested greater role for private sector in the lead bank scheme and the credit policy implementation.

"Private banks should involve themselves more actively by bringing in their expertise in strategic planning and leveraging on information technology," the committee said, adding, "The lead banks, on their part, should also ensure that private sector banks are more closely involved in the lead bank scheme, both while drawing up and in implementing the annual credit plans."

The high level committee has suggested the setting up of sub-committees of the district consultative committees to draw up a roadmap for providing banking services in any form to every village with a population of over 2,000.

These subcommittees should meet at least once a week on regular basis by March 2011, the RBI said in a release, adding that the date may be suitably advanced in states where banking penetration is better.

It has also suggested that the lead district manager may convene a quarterly public meeting at various locations in the district where the Reserve Bank, banks having presence in the area and other stakeholders are present to generate awareness of the various banking policies and regulations relating to the common person, obtain feedback from the public and provide grievance redressal to the extent possible at such meeting or facilitate approaching the appropriate machinery for such redressal.

The high level committee was set up by the Reserve Bank to improve the effectiveness of the lead bank scheme with a focus on financial inclusion and recent developments in the banking sector.