Yet, the various crises that continue to emerge provide us with many lessons, key of which is the importance of preparedness and having an effective resolution regime in the event that a bank fails. Banks are important institutions as they provide services that are critical to the functioning of the economy. These include deposit-taking and lending and the provision of payment services.
The RBI’s broad approach to financial inclusion aims at “connecting people” with the banking system and not just credit dispensation; giving people access to the payments system; and portraying financial inclusion as a viable business model and opportunity. The RBI has been initiating measures to improve the outreach of banks and their services, and promote financial inclusion in less developed states and union territories.