Union Budget 2013 - 14: Focus on infrastructure is a positive: FINO CFO

By Rishi Gupta

CFO, FINO PayTech

In the Union Budget 2013 Finance Minister - P Chidambaram presented a budget that appears "working" and has nothing exceptional to offer to fuel growth. While there are many things that could have been done, focus on infrastructure certainly is a positive step that could result in growth for allied sectors. 
 
There are quite a few announcements on the banking front which are commendable. India's first woman bank is a laudable effort as women, in general, are the real household finance managers and they need to be encouraged by providing convenient access to financial services.

Several self help groups (SHGs) have women as members and they play a very important role in empowering people and spread the importance of managing finances. A bank solely for women will go a long way in providing access to finance to such SHGs. FINO PayTech has been at the forefront of forming and promoting SHGs in the country and we believe in empowering women financially.
 
Some of the points that we find encouraging for financial inclusion in the country are:
 
1. Bringing more banks, including cooperative banks, under Core Banking System (CBS)

2. All banks to have ATMs at their branches by March 2014

3. Allowing banks & business correspondents to sell insurance. Huge benefit for rural masses as bank led BCs like FINO PayTech will ensure access to insurance

4. LIC and other insurance players to open more offices in semi urban areas with population of around 10,000

5. Extending the scope RSBY beneficiaries to unorganized sector: rickshaw pullers, auto-rickshaw drivers, sanitation and mine workers

6. Increase in the Rural Development spend and focus on infrastructure projects will ensure more work for MNREGA workers; thereby increasing their earning potential. We expect part of payments to workers be routed electronically through banks and BCs.

7. Impetus to direct cash transfer scheme ensures payments to beneficiaries are routed through Aaadhar linked bank accounts with BCs as last mile service providers.