Bankers must adopt the `inclusive' concept to promote their own interests. But it is equally necessary for the government to incentivise the development of `inclusive' model by interest subsidy.

`Micro-credit', now universally recognised as an effective tool to alleviate the misery of millions, is an essential ingredient of the "inclusive model". A lot remains to be done in this area.

An approach like that of the Universal Obligation Fund in the telecom sector needs to be evolved.

Such a fund must be created by banks through additional transaction costs levied across users. This can be returned to the institutions themselves as equity to fund their own `micro-credit' operations.

Micro-credit for millions of urban and rural artisans and independent workers is bound to accelerate the employment potential. It will increase the productive output and drive down costs of goods and services.

Over time, it will also contribute to increased consumption, savings, which will go to boost the overall growth rate of the economy.

V. Balakrishnan