Role confusion in RBI

The RBI panel on financial inclusion reinforces a traditional and outdated central planning approach to financial inclusion. The vision — in this case, of every adult Indian having a bank account by 2016 — may be a noble one, but it is no different from the paternalistic formulation which says that the state or central planner knows what should be consumed by each consumer and then licences are given to those who produce those goods.

Read Full Story>>