RBI formed Financial Inclusion Fund with Rs. 2000 crore corpus
Reserve Bank of India (RBI) has established Financial Inclusion Fund (FIF) with Rs. 2000 crore corpus expanding reach of banking services.
This fund will support the developmental and promotional activities covered under the financial inclusion initiatives.
- FIF has been established as a single entity (fund) by merging Financial Inclusion Fund (FIF) and Financial Inclusion Technology Fund (FITF).
- It will provide support for funding the setting up and operational cost for running financial inclusion and Literacy Centres.
- One of its major objective will be enhanced investment in Green Information and Communication Technology (ICT) solution.
- It will be administered by the reconstituted Advisory Board constituted by Union Government and will be maintained by NABARD.
- Contribution to FIF would be from the interest differential in excess of 0.5 per cent on Rural Infrastructure Development Fund (RIDF) and Short-Term Cooperative Rural Credit (STCRC) deposits.
- These deposits are held on account of shortfall in priority sector lending kept with NABARD by banks.