MFIs Cannot Bring about Financial Inclusion: Deputy Governor, Reserve Bank of India

MFIs will not be able to bring about financial inclusion, as their cost of lending is high. Reserve Bank of India Deputy Governor K C Chakrabarty, made the comment on the sidelines of the inauguration of Bank of India's mobile-based remittance facility for urban financial inclusion.

Chakrabarty said, "The definition of financial inclusion is providing access to appropriate financial products and services to the most vulnerable group of the society in a fair, transparent and cost-effective manner by the mainstream financial institutions.” He added that when financial inclusion happens, banks will replace MFIs. Then MFIs will take the role of money lenders.

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