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The Reserve Bank of India (RBI) believes in the age-old adage: ‘If you want to go fast, go alone; if you want to go far, go together’. That was the message from the central bank governor Sanjay Malhotra as he ephasised the need for financial inclusion for economic development that is complete. “We need to take everyone together and especially those at the bottom of the pyramid,” said the RBI chief, speaking at the annual FIBAC Conference in Mumbai on Monday. 

Acknowledging scope for further improvement in last-mile delivery of banking access in the rural parts of the country, the RBI governor said: "Let's remember, we have a responsibility to all the people of our country."

Almost two-thirds of the country's population resides in rural areas, he said. 

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He stressed the need for strengthening business correspondents as a channel, to enhance the "quality, consistency and reach of financial services" in the sparsely populated areas. 

Urging commercial lenders to step up their efforts through their financial inclusion-focused camps, he called for an enhanced coverage of re-KYC (Know Your Customer) and social security schemes. 

"Towards the objective of financial inclusion and to ensure uninterrupted access to the financial services, banks have launched a country-wide campaign from July 1, 2025 to September 30, 2025, at Gram Panchayat level," he said. 

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Focus on small businesses 

Malhotra also said that there is a "significant credit gap" to micro, small and medium enterprises. 

Describing MSMEs as a key area of focus, Malhotra said that the sector "contributes significantly to employment, exports and output". 

He hoped that banks and NBFCs make special efforts to boost formal credit to MSMEs. 

"They should leverage the public digital infrastructure like the Unified Lending Interface (ULI), in this endeavour," he noted.

The RBI governor also mentioned the “considerable progress” that the country has made in finanicial inclusion over the years, citing data captured by the Financial Inclusion index, which is based on three dimensions: access, usage and quality. 

Launched in August 2021, the RBI’s FI index seeks to capture and monitor the extent of financial inclusion across the country, by recording individual and household data in key segments like banking, investment, insurance, pension and postal services.

‘Usage’ has the maximum weight in the index, at 45 per cent, followed by access (35 per cent) and quality (20 per cent). 

The barometer captures data points on aspects such as financial services available at banks, ATMs and payment platforms (access), the use of these financial services (usage), and financial literacy, consumer protection, and grievance redressal mechanisms (quality).

He also said that the index points towards “scope for further improvement in usage and quality while also addressing gaps in access”.

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