At a time when the global and Indian economy are facing challenges on multiple fronts, efficient financial intermediation would provide impetus to the process of economic recovery by channelizing funds to the most productive sectors at the lowest cost. 10. Improvement in productivity and efficiency, and the resultant decline in cost of providing financial services will help in furthering financial inclusion (FI).
More importantly, it will help in converting the improved access to financial services into improved usage. This improved usage will make the FI activities commercially viable both for the banks and for the BCs and encourage them to scale up their FI initiatives, thereby helping in quickly bringing the remaining unbanked villages into the fold of the formal financial system.