New Banks must be strong for financial inclusion

New entrants in the banking sector should be strong , well capitalised to promote financial inclusion in a cost-effective way, said a top official at the Reserve Bank of India(RBI),which views increased access to financial services as a driver of sustainable economic growth. RBI initiated its process of increasing banking participants with a discussion paper on issues including capital requirements for aspiring banks, for which it has sought public feedback. The Govt. aims to increase access to banking services across geographics , through the new players, with a stated intention of ensuring every village with a population of over 2000 has access to such services by March 2012.(BS 01092010)