Dutch Queen appreciates India's efforts at financial inclusion

A formal definition of poverty line may not be necessary to determine financial services for the poor, according to a top RBI official. Its more important that everybody has assess to financial services.

“It does‘nt matter that we have a precise definition (of poverty line).” RBI governor, Raghuram Rajan said speaking at a media briefing with the Dutch queen Maxima who is in India to promote inclusive development as an UN representative.

Former RBI governor and ex-chairman of the Prime Minister’s Economic Advisory Council C Rangarajan submitted a report on estimating poverty to the Planning Commission recently. The report is expected to clear the ambiguity over the number of poor in the country.

The queen appreciated India’s efforts at financial inclusion. With only about 30% of households having access to formal financial services, has prompted the government and the RBI to push financial inclusion programmes.

Speaking on the various aspects of inclusive finance, the queen underscored the need for India to learn from global experiences and the need for innovative products. “We want innovations- new products to new distribution channels to reach that last mile ( in financial inclusion)”. She added that more the number of players the better it would be for the market and that there is room for all players including NBFCs and other business correspondents.

Queen Máxima visited India in her capacity as the United Nations Secretary General’s Special Advocate for Inclusive Finance for Development (UNSGSA). She has ben appointed to this post since September 2009. Her brief is Her in order to raise awareness on the importance of inclusive financial systems for achieving economic and development goals such as poverty alleviation, food security and education.