Mobile Banking For Inclusive Growth - Punjab National Bank ...

e-trackThere is no doubt that the need not only revisiting but also rewriting. In factmost popular mandate in doles and subsidies provided by the state not onlydeveloping countries is to fail to reach through such intermediation by the stateoutreach poor by creating but on the other hand weakens the self confidenceemployment opportunities and and initiative of the poor and make them more andproviding financial support to more dependent on the state as if state is next to godthe poor through state interventions. Obviously to ameliorate their misery and poverty. Thissuch intermediation often fail to reach the poor as obviously over the years have made them laggardsthese intermediaries floated by the state are loaded and fatalistic.with bureaucrats and politicians who are more proneto exploit the poor and ignorant rather than toEncourage Disintermediation To Reach ThePooroutreach the bottom of the pyramid and or to holdIt is therefore imperative to conceive tools andtheir hands in running their farms or firms and totechnologies to outreach poor with leastprovide succor to overcome calamities they oftenintermediation and creating direct accessibility toencounter. Indeed it is widely held view that ruralfinance and other support services. In fact themicro- entrepreneurs are not capable to organizerevolution in information technology has created anthemselves to conceive, run and bear risk of anyopportunity to reach directly to the customerssustainable economic enterprises and therefore theyirrespective of time and place. It has becomeneed support and hand holding by the statepossible outreach people residing in far flung ruralgovernment and or economic institutions promotedareas and has access to finance and services at anyand run by the state and people (PPP). No wondertime i.e. 24 hours. This has created new paradigmthat state policies and programs for alleviation offor financial institutions particularly banks as haspoverty are all routed through state political andbeen portrayed below.economic institutions.Failed IntermediationIt is an irony that in practice it has beenobserved that such intermediation has failed tooutreach bottom of the pyramid as because theseinstitutions are found in practice keener to fill theirpockets rather than provide succor and support to thepoor. Seibel and Parhasib and Benjamin andPiperek in their research studies (1990 & 1997) havebrought out very vividly that the traditionalapproach of funding the bottom of the pyramid onlythrough state intervention as has been generallypracticed due to perhaps the influence of Keynes'stheory of state intervention to prop up the economyJanuary-March-2010MOBILE BANKING FOR INCLUSIVE GROWTH6NEW PARADIGM:Emerging Opportunities-Dr S N GhosalPROBLEM IMPERFECT MARKET ORGANIZED MARKETROLEDEPENDING UPON STATEHELPLOWER COST & RISKBETTER ACCESSIBILITYEMERGENCE OF NEW COsTO UNDERTAKE RATINGSUSTAINABILITY IGNORED INCREASED AWARENESSEVOLUTION OF RISK ASSESSING INSTITUTIONSIt is obvious therefore that the new paradigmhas provided greater opportunity to banks andfinancial institutions to outreach rural and far flungareas to cater financial services and products to