Rural banking, a step towards a comprehensive growth

Agriculture still forms the crux of Indian economy, but it lacks the impetus that will help some profound growth in the sector. Sachin Karpe is of an opinion that t his can only happen when Indian private banks think seriously about financial inclusion of the rural population. This financial inclusion has the potential to fill a gap caused by ever soaring provisions which have hurt the financial statements of banks.

Banks have largely been resistant to the idea of launching rural branches due to reasons like high operational and maintain costs, tells Sachin Karpe. But, what they will sow now will reap them huge benefits in future. With some effort in educating the rural population, they can gain long term loyalty, increase their spending power leading to consumerism thus contributing well to the Indian economy. Sachin Karpe says, with right policies and plans, financial inclusion can do wonders in favour of Indian banks, if its far sighted benefits can be seen.