In this regard, the various initiatives taken by the Government of India and Reserve Bank such as adoption of the Business Correspondent (BC) model, relaxation of KYC norms, simplified branch authorization, preparation of board approved financial inclusion plans, mandatory opening of 25% of new branches in unbanked rural centres, preparation of financial inclusion plans by banks, etc.
The banking sector in particular is grumbling about negative interest rates. Praet: “That’s true, but their criticism is often excessive. The banks don’t have it easy and their profits are under pressure, but that’s not only due to negative rates. There was too little consolidation post crisis, for instance. So there is now a great deal of competition in the banking sector.