Financial Inclusion - News And Views - September 2016


September 2016

This month's newsletter focuses on the vexing issue of Know Your Customer rules. The Reserve Bank of India Governor, Dr.Raghuram Rajan, used the platform of the Monetary Policy Review to initiate a year-long programme focused on public awareness and consumer protection. He noted, "one of the biggest sources of harassment for ordinary customers in the banking system is meeting KYC or Know Your Customer rules. Actually, these have been simplified considerably in the recent past, but sometimes your local branch may not know it." He exhorted customers and bank staff to refer to the simple Know Your Customer Guidelines uploaded on the RBI website.

Upcoming Payments Banks have also complained of the paper-based KYC submission to the central KYC repository — Central Registry of Securitisation Asset Reconstruction and Security Interest of India, or CERSAI (Economic Times, August 19, 2016). Though a centralised database is expected to reduce the burden of KYC, the insistence on paper-based submission takes the entire process one step back.

The latest MicroSave study brings out the need for KYCHarmonisation across banking and telecom regulators. The study analyses KYC processes for financial service providers such as Banks, Telcos, and Pre-paid Payment Instrument (PPI) issuers, and for SIM card issuance and activation by telecom operators in India. A detailed costing analysis reveals that "If e-KYC is adopted for customer on-boarding by banks (for savings bank account opened through branches and alternate channels) and by MNOs (for SIM card activation), an estimated INR 100 billion can be saved over the next five years (by 2021). Additionally, consumers opening accounts through e-KYC (and innovative one-click solutions to open accounts) can save an estimated INR 40-55 billion over the same period." The report recommends that RBI and DOT/TRAI should harmonise their existing lists of Proof of Identity and Proof of Address documents for KYC and CDD, work towards an e-KYC regime and leverage available digital infrastructure to reduce costs for providing financial services.


Digital Financial Inclusion: Agenda For India
Policy Brief July,2016

Closing the Gender Gap in Financial Inclusion
Policy Brief June,2016

Building the Agent Network for Financial Inclusion
Policy Brief April,2016

In the Media

RBI needs a new monitoring culture
Mint, 8 August 2016

Don't write off payments banks
Mint, 1 June 2016

The Aadhaar Act's a done deal. What next?
THE HINDU BusinessLine, 25 May 2016


Big Reform in Indian Banking, Emphasis on Financial Inclusion
RBI Payment and Settlement Systems: Vision 2018

Section I: Policy – the latest from India’s policymakers

Banking Sector Reforms: A Journey, Not a Destination
Shri S. S. Mundra, Deputy Governor, Reserve Bank of India, August 24, 2016

ABCD of MSME Credit
Shri S. S. Mundra, Deputy Governor, Reserve Bank of India, August 23, 2016

New paradigm in Banking : Banking is Necessary, Not Banks - Really?
Shri R. Gandhi, Deputy Governor, Reserve Bank of India, August 17, 2016

Banking Horizon: Clouds & Silver Linings
Shri S. S. Mundra, Deputy Governor, Reserve Bank of India, August 16, 2016

Interesting, Profitable, and Challenging: Banking in India Today
Dr.RaghuramRajan, Governor, Reserve Bank of India, August 16, 2016



Pradhan Mantri Jan - DhanYojana Accounts Opened  
Trend of Zero Balance Accounts Under PMJDY
Position of Overdraft
Position of Bank Mitra Infrastructure
Direct Benefits Transfer Progress


Section II: News and Views Digest – the latest from India and abroad


Will Mobile Network Operators Make It As Payments Banks?
Financial inclusion, the cashless way
This Is Financial Inclusion
The rural piggybank
Tata, Nilekani, Kelkar to launch financial inclusion venture
The new dimension of financial inclusion
India leads the world in payment processes with UPI
Offline banking apps push inclusiont
77 million women added to banking system in 1 year
Creating space for financial services
Indian Postal Bank would be a game changer:
Govt. presents blue print on Postal Bank
The many virtues of e-cash
FINO PayTech: The people's bank
Microfinance leaves India's banks in the dust
Revitalizing the Self-Help Group Movement in India
How MoboMoney is helping boost retail, e-commerce in India
India Post Payments Bank incorporated, to start in 2017
India's Paytm raises $60 million as launch of its payments bank nears
Norms for floating small finance, payments banks 'may be eased
SBI-RIL payments bank may be launched only after Jio rollout
Credit bureaus want payments banks to share transaction data: report


The Intersection Of Fintech And Financial Inclusion In Asia
Leveraging Fintech to Achieve Financial Inclusion in Indonesia
A Tale of Two Markets
Digital Financial Services for Cocoa Farmers in Côte d’Ivoire
Financial Inclusion Has a Big Role to Play in Reaching the SDGs
Interactive SMS Drives Digital Savings and Borrowing in Tanzania
The Unusual Financial Dynamics of Short-Tenor Digital Credit
PMJDY: Commendable Growth, Yet Low-Hanging Barriers Persist
Energy and Water for All: The Last Mile Is the Longest Mile
Daily Diaries Reveal Bangladesh’s Shifting Financial Landscape
What’s the Most Cost-Effective Way to Reduce Extreme Poverty?
Leading – by Learning – on Customer Centricity
Mobile Money in Bangladesh Plateaus after Fast Start

Section III: Research – surveys and studies on expanding access to financial services

Re-Imagining the Last Mile – Agent Networks
Denny George, Sunil Bhat and Anil Kumar Gupta, MicroSave, August 24, 2016

Fair Price Shop Sustainability in Automated TPDS: A Mirage or Possibility?
Lokesh Singh, Rridhee Malhotra and ArshiAadil, MicroSave, August 22, 2016

Agent Network Accelerator Survey: Bangladesh Report 2016
Akhand Tiwari, Maha Khan, Pragya Jain, Vera Bersudskaya and Jakirul Islam, MicroSave, August 08, 2016

The monthly newsletter from the Indicus Centre for Financial Inclusion documents the latest news and views in the financial inclusion space. Editor: Sumita Kale can be contacted at The Indicus Centre for Financial Inclusion was launched in 2011 to distil and disseminate information on accelerating the poor’s access to high-quality financial services. The Centre is supported by the Bill & Melinda Gates Foundation.

© Indicus Centre for Financial Inclusion. All rights reserved. 6th September 2016

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