##bc ) which i referred to earlier is mandated to review the flow of credit in each district with reference to the cdr and draw up a special, monitorable action plan for districts with cdr of less than 40 %. if the cdr of ner is low, what it means is that savings of people in the region are going outside to finance investment elsewhere. this is unfair and strictly inadvisable. the savings in the ner should be used to finance investment here in the region. this requires responses both from supply and demand sides. our efforts have so far largely focused on the supply side. we must do much more to generate demand for credit. the state governments and the banks should work in partnership in this regard. the reserve bank will be happy and willing to promote this partnership for raising the absorptive capacity of states for institutional credit. 5. indian government is now encouraging trade with asean. but unfortunately there are very limited bank branches along border. the existing branches are not sufficient to meet the demand of the customers. will rbi take any step? as i have already pointed out earlier, at the policy level, we have been encouraging expansion of bank branches in the ner. if the state governments come forward with infrastructure development and other facilities along the border, the reserve bank will be bis central bankers ’ speeches happy to work with them to improve the presence of banks along the border. perhaps, the ne council should come up with a viable plan in this regard. 6. customers often complain about poor atm service. existing atms are inadequate to meet the demand as volume of business is increasing day by day. what is your advice to the banks? scheduled commercial banks are no longer required to take reserve bank ’ s permission to install off - site / mobile atms. as at end march 2011, there were close to 75, 000 atms across the country. but you are right. with just about 1800 atms, the share of the ner in the total number of atms is low. you must, however, appreciate that north - east is a difficult terrain. there are frequent power failures, and problem of digital connectivity and security. lack of infrastructural facilities is a major problem restricting the spread of banking, including atms in the area. nevertheless, at the policy level, we have taken some measures to enhance access of banking services as a whole to north east region. these include : to improve branch network in the region, domestic scheduled

in a position to not merely avail the offered services, 2 / 5 bis central bankers'speeches but are also capable of demanding preferred products and services suitable to their needs / choices. 14. the mudra is a case in point. while such a massive push would have lifted many beneficiaries out of poverty, there has been some concern at the growing level of nonperforming assets among these borrowers. banks need to focus on repayment capacity at the appraisal stage and monitor the loans through their life cycle much more closely. 15. the role and importance of the microfinance sector in our economy has also been steadily growing. according to the bharat microfinance report 2019 prepared by sa - dhan, mfis operate in 29 states, 5 union territories and 570 districts in india. the mfis are also expanding into newer territories for reducing their concentration risk. 16. tailored products for providing credit to those without a credit score, entrepreneurial and consumption credit, handholding, financial literacy, social occasion credits and insurance ( life and non - life ), are all waiting to be tapped in scale and size. limited forays have been made but are yet to achieve their full potential. 17. the rbi defines financial inclusion as the “ process of ensuring access to appropriate financial products and services needed by all sections of the society in general and vulnerable groups such as weaker sections and low income groups in particular, at an affordable cost in a fair and transparent manner by regulated, mainstream institutional players ”. the national strategy for financial inclusion ( nsfi ) 2019 – 24 has been framed by us. it gives the vision to make financial services available, accessible, and affordable to all citizens in a safe and transparent manner to support inclusive and resilient multi - stakeholder led growth. potential of microfinance 18. a major demographic change is taking place in our country with a huge and growing working population. there is a big chunk aspiring to grow into the middle class with the support of institutional credit. therefore, microfinance can play a big role in meeting their requirements and fulfilling their goals. 19. the credit needs of low - income groups range from emergency loans, consumption loans, business loans, working capital loans, housing, etc. in addition to credit, poor households would benefit from a combination of financial services, including savings, remittances, loans, microinsurance, micro - pensions, and the like. 20. in today ’ s world