Govt approves Rs 1,000 cr for two financial inclusion funds
The government on Thursday cleared Rs 1,000 crore for setting up two funds of Rs 500 crore each to provide low-cost credit facilities to weaker sections under its financial inclusion programme.
By PTI |
NEW DELHI: The government on Thursday cleared Rs 1,000 crore for setting up two funds of Rs 500 crore each to provide low-cost credit facilities to weaker sections under its financial inclusion programme.
The Cabinet approved constitution of a Financial Inclusion Fund (FIF) and Financial Inclusion Technology Fund (FITF) as announced by Finance Minster P Chidambaram during Budget 2007-08, an official statement released after the Cabinet meeting said.
The funds would have an initial corpus of Rs 25 crore each. The government and the Reserve Bank would contribute 40 per cent each to the funds, while the National Bank for Agriculture and Rural Development (NABARD) would finance 20 per cent.
FIF would be used for training inputs especially to business facilitators and correspondents, who would ensure institutional credit as representatives of banks, particularly among weaker sections and low income groups.
The FITF would be used for providing "user-friendly" technology to ensure affordable financial services to the disadvantaged sections, the statement added.
The fund would also be utilised for creating a common technology infrastructure with comprehensive credit information, and providing viability gap funding for unproven, but potential technological interventions.
The financial inclusion programme would be implemented and monitored by NABARD and an Advisory Board would be set up to provide guidance on aspects relating to the funds.
The Cabinet approved constitution of a Financial Inclusion Fund (FIF) and Financial Inclusion Technology Fund (FITF) as announced by Finance Minster P Chidambaram during Budget 2007-08, an official statement released after the Cabinet meeting said.
The funds would have an initial corpus of Rs 25 crore each. The government and the Reserve Bank would contribute 40 per cent each to the funds, while the National Bank for Agriculture and Rural Development (NABARD) would finance 20 per cent.
FIF would be used for training inputs especially to business facilitators and correspondents, who would ensure institutional credit as representatives of banks, particularly among weaker sections and low income groups.
The FITF would be used for providing "user-friendly" technology to ensure affordable financial services to the disadvantaged sections, the statement added.
The fund would also be utilised for creating a common technology infrastructure with comprehensive credit information, and providing viability gap funding for unproven, but potential technological interventions.
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The financial inclusion programme would be implemented and monitored by NABARD and an Advisory Board would be set up to provide guidance on aspects relating to the funds.
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