Cabinet nod to setting up of Rs 1000 cr Funds

New Delhi, Feb 21 (UNI) The Union Cabinet today approved the proposals for the setting up of Financial Inclusion Fund (FIF) and Financial Inclusion Technology Fund (FITF) with a corpus of RS 500 crore each to ensure timely and affordable credit access to the marginalised and enhance investment in information communication technology.

The Government will contribute a maximum of Rs 200 crore each to the two funds over five years, an official spokeperson said after the Cabinet meeting.

The setting of FIF and FITF was announced by Finance Minister P Chidambaram in his Union Budget 2007-08, with initial funding to be contributed by the Centre, the RBI and NABARD.

The aim of FIF will be to support ''developmental and promotional acitivites'' to secure greater financial inclusion, particularly among weaker sections, low income groups and in backward regions or hitherto unbanked areas.

The FITF's objective will be to enhance investment in information communication technology, aimed at promoting financial inclusion, stimulating the transfer of research and technology in financial inclusion, and encouraging an environment of innovation and cooperation among stakeholders.

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