Deepak Mohanty Panel report on medium-term path on financial inclusion.
The recommendations include
* Banks have to make special efforts to step up account opening for females. Given the government’s emphasis on the welfare of the girl child, it suggested that the government can consider a welfare scheme—Sukanya Shiksha —that can be jointly funded by the central and state governments.
* Aadhaar should be linked to each individual credit account and the information shared with credit information companies. This will not only be useful in identifying multiple accounts, but will also help in mitigating the overall indebtedness of individuals.
* To increase formal credit supply to all agrarian segments, the digitisation of land records should be taken up by the states on a priority basis
* To ensure actual credit supply to the agricultural sector, Aadhaar-linked mechanism for credit eligibility certificates should be introduced
* Phasing out the interest subvention scheme and ploughing the subsidy amount into a universal crop insurance scheme for small and marginal farmers
* A universal crop insurance scheme covering all crops should be introduced starting with small and marginal farmers with a monetary ceiling say of ·2,00,000. The insurance should be mandatory for all agricultural loans
* The government may restructure the Agriculture Insurance Company (AIC) to take up the role of a dedicated ‘Crop Insurance Corporation’
* Satellite imagery can be used for ‘crop mapping’ and to assess damage. GPS-enabled hand-held devices can be used for ‘ground trothing’. In addition, drones and dove, micro satellites could also be deployed to assess crop damages.
* A system of unique identification for all MSME borrowers and the sharing of such information with credit bureaus to be set up
* Commercial banks in India may be enabled to open specialised interest-free windows with simple products like demand deposits, agency and participation securities on their liability side and to offer products based on cost-plus financing and deferred payment, deferred delivery contracts on the asset side
* Banks will have to consider introducing a cash management system that can help to scale up BC operations
* Banks need to introduce a simple registration process for customers to seed their mobile number for alerts as well as financial services
* The financial literacy centre network needs to be strengthened to deliver basic financial literacy at the ground level. Lead banks need to identify a few lead literacy officers who could train the people manning FLCs