RBI Governor Raghuram Rajan has said that financial inclusion should not be pressed beyond a point because beneficiaries may not have the capacity to make use of funds being made available to them.
Participating in a seminar on financial inclusion, on the sidelines of IMF-World Bank meetings at Lima in Peru, Dr Rajan said pushing financial inclusion beyond a point could have negative impact because people at the bottom of pyramid do not have capacity to absorb credit.
He also made a case for strengthening the payment mechanism to improve traditional method for delivery of credit. Dr Rajan further said technology and e-model could be used for improving businesses at remote centres. Giving an example, he said a carpet weaver in Jammu and Kashmir could benefit immensely by selling his products electronically.
At the same time, the RBI Governor made a strong case for developing capacities to deal with the misuse of technology by criminal elements.