Addressing cybersecurity important for final inclusion: RBI governor Das

Reserve Bank Governor (RBI) Shaktikanta Das was recently at the webinar. While addressing his keynote on ‘Investing in Investor Education in India: Priorities for Action’, organised by the NCAER, Das said, Issues concerning cyber security and data protection must be addressed to gain confidence of the excluded section in use of technology, which is necessary for promoting financial inclusion.

“Technology, though being a great enabler, can also lead to exclusion of certain segments of society,” The RBI Governor added that it was imperative to build trust in formal financial services among the hitherto excluded population.

“Adequate safeguards need to be reinforced to address issues of cyber security, data confidentiality, mis-selling, customer protection and grievance redress through appropriate financial education and awareness. These cast great responsibility on financial education providers,” he emphasised.

Financial inclusion in the country, is poised to grow exponentially with digital savvy millennials joining the workforce, social media blurring the urban-rural divide and technology shaping the policy interventions, he said.

The Governor also stressed that in a large country like India with an aspiring population, financial education cannot remain just the responsibility of financial sector regulators. This aspect has been highlighted in the National Strategy for Financial Education (NSFE 2020-2025) document which recommends a multi-stakeholder led approach to achieve financial wellbeing of all.

“Going forward, increasingly, educational institutions, industry bodies and other stakeholders like think tanks, research institutions should come forward to shoulder the responsibility of increasing financial literacy through appropriate awareness campaigns,” Das said. Financial inclusion initiatives in India started in the aftermath of first All India Rural Credit Survey in 1954 with promotion of cooperatives.

This was followed later by expansion of branch network after nationalisation of major private sector banks, launch of Lead Bank Scheme, promotion of Self Help Groups (SHGs), Joint Liability Groups (JLGs), implementation of Banking Correspondents (BC) model, expansion of banking outlets, creation of payments banks and small finance banks, among others.

The largest impact in recent years came from the opening of Jan Dhan accounts and implementation of the Pradhan Mantri MUDRA Yojana (PMMY). The launch of the Pradhan Mantri Jan Dhan Yojana (PMJDY) in 2014 has resulted in almost every household having access to formal banking services along with a platform for availing low value credit, insurance and pension schemes, the governor said.

“This has been ably supported by initiatives to ensure last-mile delivery of banking services through innovative banking channels like the BC model. Thanks to technology, there has been massive improvement in deepening of digital financial services,” he said. The Jan Dhan, Aadhaar and Mobile (JAM) ecosystem has made a significant difference in the universe of financial inclusion, Das added.