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India: Raghuram Rajan Cautions on Bullet Pace of Jan Dhan Implementation

India: Raghuram Rajan Cautions on Bullet Pace of Jan Dhan Implementation

Reserve Bank of India (RBI) governor Raghuram Rajan’s warning to sarakari banks, on a hunt to win maximum number of bank accounts in minimum days to make Narendra Modi government’s flagship financial inclusion scheme Jan Dhan Yojana a success, reflects the regulator’s concern on the way government using state-run banks to push its populist agenda overlooking prudential norms. On Monday, speaking at a banking conference, Rajan highlighted the risks of hurrying for bank accounts under the government scheme. "When we roll out the scheme, we have to make sure it does not go off the track. The target is universality, not just speed and numbers," Rajan said.

Policy & Regulation