The Reserve Bank of India released the report of the Household Finance Committee, which is available for comments from the public till September 15th, 2017. The report is comprehensive as it analyses the distinctive features of Indian household balance sheets, looks at emerging trends and their impact on the household balance sheets, uncovers significant evidence for the underlying causes of the deviations between Indian household financial allocations and what might be considered to be more desirable financial allocation and behaviour and proposes some solutions.
A quick summary of the report can be read from Monika Halan's piece "Need supply side solutions to solve the household finance problem in India" (Mint, August 30th, 2017), the Hindu Business Line " Households should have a set of readily available financial products", (August 24th, 2017) and Moneylife, "Complicated paperwork and bureaucratic impediments affecting household savings: Report" (August 31, 2017)
The connect of the committee's findings with the need for a privacy law is set out by Rahul Matthan (Mint, August 3oth, 2017)
Coming on the third anniversary of the PMJDY, the analysis and recommendations made in the report are crucial for extending meaningful financial inclusion, as it shows how banks and other financial service providers need to reorient themselves towards a customer-centric approach - there are clear and significant gains at micro and macro levels if the supply side gets it right.
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