Why the Nachiket Mor committee report on financial inclusion disappoints

Abstract

The report impresses to deceive. It is a good academic work that lays a broad design principle, but does not look at the gorilla in the room. The Committee on Comprehensive Financial Services for Small Businesses and Low Income Households, headed by Nachiket Mor, has submitted its report to the Reserve Bank of India (RBI). The appointment of the committee was one of the earliest announcements made by governor Raghuram Rajan after he assumed office in September.

The composition of the panel was unusual and clearly indicated the intent that “business as usual" with committees was not okay. The committee drew heavily on people with international experience, the private sector and those who had resorted to disruptive innovation. If the intent was to bring in an international perspective to inclusion, then governor Rajan should be happy because it achieved exactly that. A perusal of the literature that the committee has consulted, the people they have interacted with and the approach to the problem shows that this report is a significant departure from the normal. It uses financial inclusion as a peg to hand a rather long agenda of financial sector reforms. Nothing less. Read more at: https://www.livemint.com/Opinion/rSlVyk6J9fqPMzj0H4yuxL/Why-the-Nachiket-Mor-committee-report-on-financial-inclusion.html