Unless banks are convinced that reaching out to the common man is not just a forced regulatory imperative but a potential business opportunity, the numbers will remain without life. The Reserve Bank looks forward to competition among banks to develop business models for such small, low staff and low cost branches. Conclusion 47.
I have so far covered five specific areas: (i) microfinance; (ii) priority sector lending; (iii) lending interest rate system; (iv) savings deposit interest rate; and (v) liberalization of the branch authorization policy, to illustrate how the Reserve Bank’s regulatory and supervisory policies are guided by the belief that financial inclusion is a necessary prerequisite for inclusive growth. 48.