RBI to compensate banks to promote banking inclusion in North-East
The Reserve Bank of India has said that it will compensate 100 per cent revenue loss to banks for five years to encourage financial inclusion in the North-East regionin the country.
RBI Deputy General Manger T Jamang said that under the plans, a banking facility should be available in each village or cluster of nearby villages that has a population of 2,000 by March 2012.
“RBI will compensate 100 per cent revenue loss to banks for five years as an incentive to push financial inclusion in the region,” Jamang said. He was speaking on the sidelines of an annual payment conference of the central bank.
Jamang also said that the compensation will also be extended to specific areas in which the population is more than 1,000 and more. He also said that the central bank is aiming at including people in the banking system by connecting villages with a banking correspondent and mobile individuals.