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Showing posts with the label Deepak Mohanty

RBI panel for direct transfer of cash, abolishing farm subsidy

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A  Reserve Bank of India  (RBI) committee on financial inclusion has suggested that the government should transfer cash directly to persons instead of giving subsidies, and should replace interest subvention on agriculture loans with affordable universal crop insurance scheme. The committee on medium-term path on financial inclusion, headed by RBI executive director Deepak Mohanty, also recommended linking credit accounts with unique identification number, or Aadhaar number, and share information with credit information companies to enhance stability of the credit system and improve access. The committee was set up in mid-July after Prime Minister Narendra Modi told RBI in its 80th anniversary that a road map should be built to include 90 per cent of India’s unbanked population in the financial fold. The group opined that the most efficient way for an effective financial inclusion is direct cash transfer. Presently, the government gives interest rate subvention of two pe...