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Submitted by B. Yerram Raju on

Stats and surveys apart, if we see the reasons for slow pace of banking penetration in rural areas at least in India during the last eight years of financial inclusion agenda, it is more because of the banks' inability to see beyond their nose. If they could view the more they reach, the more the rural area consumption increases and the more it increases, the more the banks can earn. Second, as long as the banks take a truncated view of banking transactions alone as their bread earner and do not see the need for effective participation in the improvement of basic infrastructure in education and health, they would be keeping off the incentive for their new urban educated recruitees to flock to rural side for work and thus get caught in the vicious cycle of limited or no staff, idle systems, and loss making instrumentality for financial inclusion. The mobile payments when supported by proximate and convenient payment and settlement solutions faster, would make the inclusive growth happen that much quicker.