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I have some experience in this space. A decade ago, I led a talented team to design the largest (at that time) satellite-based network to expand India's largest
by somberi 12y ago
I have some experience in this space. A decade ago, I led a talented team to design the largest (at that time) satellite-based network to expand India's largest bank (it was not then) to rural india.
The government, via Reserve Bank of India, earmarks specific sectors, in line with their current policy, as "priority sector". This can be housing, agriculture, rural electrification, etc. And banks are mandated to increase their focus and show metrics that prove they are engaging bona fide with the "priority sector". Rural banking is one such.
The cash deposits and reserves from these customers, broadly speaking, are not that much. They tend to be big in Gold Loans and a source of Agriculture / Animal Husbandry loans.
- nnain 12y ago> The cash deposits and reserves from these customers, broadly speaking, are not that much. Indeed the deposits by the very poor aren't much. But this is a government scheme targeted at enabling the poor, not to help the banks. My mom once mentioned, how nice it was when my parents first got a bank account. They started saving. Money became easier manage. To enable 15Mn people to have bank accounts is a good step.