Rajan hails SC decision on Aadhaar
BY PTI16 Oct 2015 12:53 AM GMT
PTI16 Oct 2015 12:53 AM GMT
RBI Governor Raghuram Rajan on Thursday welcomed Supreme Court ruling on <g data-gr-id="42">use</g> of Aadhaar card in more schemes and said it will help in financial inclusion drive and providing easy access to loans. "The Supreme Court ruling today on Aadhaar card will be quite helpful, making us use it in banking services. It will make easier for financial inclusion," Rajan told reporters after the central bank's board meeting here. With <g data-gr-id="36">an UIDAI</g> number, a person will be able to open a bank account as it will work as an identification document and will help in easier access to loans, he added.Â
"UID will ensure that people will not get multiple loans from different places. We can make sure that it does not happen. This is an example on how we can make more lending possible," said Rajan, who was in the city for RBI's 554th Board Meeting. The Supreme Court today permitted <g data-gr-id="33">voluntary</g> use of Aadhaar card for schemes like MGNREGA, all types of pension schemes, PM's Jan Dhan Yojana and EPF.Â
While modifying its earlier order restricting <g data-gr-id="32">use</g> of Aadhaar for PDF and LPG only, the apex court ruled that Aadhaar card scheme would be purely voluntary and not mandatory till the matter is decided by the court. "What we need <g data-gr-id="43">is</g> responsible lending and responsible borrowing, and much of our effort on financial inclusion is on how to make that happen," Rajan said. The Governor said it is easy to get loans in the present <g data-gr-id="41">system</g> but the focus is on how not to make those bad loans. "We have given enough power to banks to tackle NPAs. They must recognise, resolve and monitor future loans," Rajan said. He said small entrepreneurs and self-help groups can avail loans, but it should be taken care of that they don't fall in a "debt trap". Speaking about the meeting, Rajan said the board <g data-gr-id="40">discussed about</g> <g data-gr-id="37">state</g> of <g data-gr-id="38">economy</g> of India and also <g data-gr-id="39">world</g> economy. "We discussed regulations, ombudsmen and <g data-gr-id="30">ponzi</g> schemes. <g data-gr-id="35">Wide</g> variety of topics were discussed," he added. Rajan also said that RBI is working with the Finance Ministry to increase capital infusion in the banks.Â
"The government had announced this to be Rs 25,000 crore. Some banks have got it and some will get it soon. It is almost done," he added.
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