Financial Inclusion Current Affairs - 2020

EASE 3.0 launched by the Finance Minister to enhance Ease of Banking

On February 26, 2020, the Finance Minister Nirmala Sitaraman launched Enhanced Access and Service Excellence (EASE 3.0). It was launched along with the annual report of EASE 2.0 at a function organized by Indian Banks’ Association.

Highlights

The main aim of EASE 3.0 is to make public sector banking technology enabled and smart. By this the initiative intends to achieve ease of banking for customers. Along with its launch, the GoI has also warned about the over reliance of the state-run banks on credit rating agencies while sanctioning loans.

What is EASE?

EASE is set of technology-based banking reforms. It aims at improvising banking sector with technology. It ensures wider financial inclusion, better banking experience and easier credit distribution.

Significance

The initiative will enhance paperless, digital banking. It will also support other GoI initiatives such as Udyami Mitra, credit take-off, Dial-a-loan and credit at a click. EASE will increase the reach all these initiatives and improve the standards of banking sector.

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RBI launches 5-year Financial Inclusion Strategy

The Reserve Bank of India has launched National Strategy for Financial Inclusion (2019-24). The main motive of the strategy is to provide access to financial services in an affordable manner.

Highlights

The Strategy has been launched after thorough consultation with SEBI (Securities Exchange Board of India), PFRDA (Pension fund Regulatory and Development Authority of India) and also Insurance Regulatory and Development Authority of India (IRDAI). The strategy was launched based on the recommendations of the Financial Inclusion Advisory Committee that worked in consultation with the above agencies.

Key Recommendations

The following are the recommendations included in the strategy

  • The committee has recommended Universal Financial Access. Under this, every village will have formal financial service provider within a radius of 5 km.
  • The committee has recommended for the strengthening of Digital Financial Services to reach a less-cash society by 2022.
  • Every adult registered under Pradhan Mantri Jan Dhan Yojana should be enrolled in pension scheme and insurance scheme
  • The Public Credit Registry shall be made completely operational by March 2022.

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