i nc lu s i ve f i nanc e i nd i a re port 2014
138
NOTES
1. The ratio of total financial claims to national income and
total financial claims to net domestic capital formation in-
creased from 0.17 to 0.61 and 1.38 to 2 respectively during
1970/75–2011/12. The ratios of both deposits and credit to
GDP too improved during this period from suggesting an
enhanced role of the banking sector in developing the coun-
try’s financial sector. See Mohanty (2014). There has been
financial deepening: the deposits/ GDP ratio rose from 16.4
per cent in 1971–75 to 36.1 per cent in 1989–90 and further
to 60 per cent in 2004–05. Bank credit to commercial sector
increased from 15.6 per cent to 30.3 per cent of GDP in
1989–90 and 48 per cent in 2005–06.
2. ‘RBI Releases Gist of Comments on the Discussion Paper on
Entry of Small Banks’, Press Release dated 23 February 2010.
Available at
/
PDFs/IEPR883R1210.pdf
3. ‘Guidelines for Licensing of New Banks in the Private Sector’,
22 February 2013.
/
PDFs/GFLNB2222013.pdf
4. ‘RBI Decides to Grant ‘In-principle’ Approval for Banking
Licences’ (2014), Press Release dated 02 April 2014.
Available at
PDFs/IEPR1945ABL0414.pdf
5. Ibid.
6. Wholesale banks with twenty or fewer branches could be
referred to as wholesale investment banks.
7. The Mor Committee (2014) explains that the Payments Bank
can be nested or independent. A Nested Payments Bank
would need to partner with a bank (Sponsor Bank), while
an Independent Payments Bank would directly participate
in the payments system. While nested payment bank hold
an escrow account with its sponsor bank, its independent
counterpart would hold some combination of CRR and SLR
directly with the central bank.
8. Personal interview, 16 June 2014, Mumbai.
9. In March 2014 the Supreme Court directed the Centrral
Government to withdraw with immediate effect all notifica-
tions making Aadhaar cards mandatory for availing benefits
under social security schemes and not to deprive any citizen
of any benefit because s/he does not possess an Aadhaar
card. It also restrained the UIDAI from sharing biometric or
any other data of the Aadhaar card holder with any agency
without the express consent of the card holder. The UIDAI
is committed to protecting the right to privacy as a basic
human right of an individual. Venkatesan (2014).
10. ‘Draft Guidelines for Licensing of “Small Banks” in the
Private Sector, 17 July 2014
_
viewcontent.aspx?Id=2856; ‘Draft Guidelines for Licensing
A
PPENDIX
5.3
The G20 Consumer Protection Principles
• Financial consumer protection should be an integral part of the legal, regulatory and supervisory framework.
• There should be oversight bodies explicitly responsible for financial consumer protection, with the necessary authority to fulfil
their mandates.
• All financial consumers should be treated equitably, honestly and fairly at all stages of their relationship with financial service
providers.
• Financial services providers and authorized agents should provide consumers with key information that informs the consumer
of the fundamental benefits, risks and terms of the product.
• Financial education and awareness should be promoted by all relevant stakeholders and clear information on consumer
protection, rights and responsibilities should be easily accessible by consumers.
• Financial services providers and authorized agents should work in the best interest of their customers and be responsible for
upholding financial consumer protection.
• Relevant mechanisms should protect consumers’ deposits, savings, and other similar financial assets, including against fraud,
misappropriation or other misuses.
• Consumers’ financial and personal information should be protected.
• Consumers should have access to adequate complaints handling and redress mechanisms.
• Nationally and internationally competitive markets should be promoted in order to provide consumers with greater choice
among financial services and create competitive pressure on providers to offer competitive products, enhance innovation and
maintain high service quality.
Source
: KPMG International (2012).
