This refers to your edit ‘India needs new banks’ (ET, March 4). Financial inclusion and financial literacy will be of paramount importance while implementing the UID project as well as reforms to protect the interests of the poor. The modern banking system has lost its personal touch. Even citizens of semi-urban areas shy away from using ATMs. NextGen banking may fail in rural areas. It is true that we need more banks and new ways of thinking, competition will drive away the disabled.
ET in the same edition suggested the correct solution to the problem, ‘consolidate banks before they compete’. The Narasimhan panel has also suggested reducing the number of banks with more branches at the national level. The author reports that out of 9,000 private bank branches, only 1,138 are located in rural areas. This means that they are not inclined to move to the countryside.
Nashik, March 4