Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARDS :: VAT RATES :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: list of goods taxed at 4% :: due date for vat payment :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: Central Excise rule to resale the machines to a new company :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: empanelment
 
 
« General »
 How to claim tax benefit on tuition fees under Section 80C
 Online Income Tax grievance redressal facility launched at 60 offices
 Demonetisation impact on government tax revenue marginal; direct tax personal income grew at above budget estimates
 ICAI seeks more accountability, transparency in defence sector
 Will Budget help double farmers’ income?
 Verify online deposits made post demonetisation, income tax department asks taxpayers
 Union Budget 2017: Best budget is do not change anything, do no harm, implement well
 Why salaried class deserves standard deduction
 3 new taxes that Modi government could introduce, but won't
 Tax gains may showcase demonetisation windfall
 Tax exemption for ELSS will help broaden investor base, channel household savings

Ernst & Young: Making fin inclusion must for new players is problematic
March, 10th 2011

Leading industry expert Ernst & Young (E&Y) today said if the financial inclusion project is to be materialised and sustained, it must be pushed directly by the government, as in the present model it is not only unviable but will also deter prospective new bank licence applicants.

"The Reserve Bank is inviting trouble by insisting on a financial inclusion plan as a mandatory criterion for getting new bank licences," E&Y National Leader (Global Financial Services Ashvin Parekh told PTI here.

"Since the current inclusion model is not a profitable model, this will not only deter prospective licence applicants from seeking licence, but will also create problems for the entire banking industry as banking is a highly inter-related business," he said.

It seems that the Reserve Bank is either not getting the right direction or not sure of its direction when it comes to the inclusion project, if the latest vibes are any indication, he said, adding, "I feel the regulator is on the back foot now."

He further said, "I don't think any private business house will be in a position to make such a huge investment needed for inclusion just because it is mandated."

Parekh, who did not join the RBI committee that wrote the draft paper on new bank licences, despite an invitation citing conflict of interest, further said, "if the Centre can give away Rs 6,000 crore by way of capital infusion to the weak public sector banks, why can't it start a mechanism to start the financial inclusion project."

"The government is in a much better position to start this project and then incentivise banks to carry on," he said.

Many of the existing banks do not have the financial wherewithal to take up a long-term projects, as the inclusion project will be a viable business proposal for banks only after a long period, he added.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions