RBI plans financial literacy and credit counselling programmes

Jaipur, June 30 (UNI) Reserve Bank of India (RBI), the apex bank body in the country will launch a special drive in spreading financial literacy and credit counselling for the common man with Indian banking industry's integration with the global market systems.

RBI Governor Dr YV Reddy said this while addressing the Golden jubilee seminar of Institute of Develoment Studies on the topic of ''Evolving the Role of RBI: Recent Developments''.

He said the RBI has launched vernacular web sites in 11 languages to inform the citizens of the new development in the banking and financial sectors and more is on the anvil.

Mr Reddy while calling for more inclusive growth called for strengthening and reforming the state level systems for better financial management.

The Governor said RBI has favoured an evolutionary approach to radcial change in banking sector while it encourages private sector banks along with government own undertakings.

Mr Reddy said the economy is fast transforming in several areas and no set model is really working, so the bank has to use multiple instruments to deal with volatility in this sector.

In this connection, Mr Reddy said ''nobody heard of over-heating of the economy a few years back. A double digit inflation is people used to live with. But with the economy on a fast growth trajectory with 9 per cent growth even seven per cent inflation is considered very high and the RBI wants to keep it below five per cent''.

Comparing the FDI investment in China and India, he said while China's FDI is creating employment and profit in the absence of local entrepreneurs, in India, on the contrary the local entrepreneurs triggering growth.

Speaking on the occassion, IDS President Vijay Shanker Vyas emphasised the need for reform in priority sector lending and encouragement to the micro credit for self-help groups.

UNI