low value transactions where the profit margins have emerge through steady revenue streams. • banks have to think and act differently and make themselves more flexible so as to meet even the smallest requirements of the rural population. banks need to move from a cost centric model to a revenue generating model by offering a bouquet of deposit, credit and other products and services the products and services should be designed in such a way that it suits the needs of people in unbanked rural areas. suite of products linked to the scheme of poor borrowers need to be innovated. bc model there are many challenges being faced while implementing bc model. sustainability and scalability of the bc model is essential. more and more innovative products will have to be introduced which would benefit both banks as well as the rural people and at the same time make the bc model more viable. direct benefit transfers the direct benefits transfer ( dbt ) programme, launched in 2013 as a game changer, has not progressed as smoothly as envisioned. with the new government now ready to move vigorously ahead on this front, this policy brief looks at experiences from within the country and abroad to distil the key inputs to get the programme going on the right path. the main priority is to streamline the direct benefits transfer programme to work efficiently through electronic channels the such interoperative rupay debit card. the government should accelerate the de - duplication and seeding of bank accounts under one agency instead of leaving line ministries to handle the implementation of individual schemes. transactions during the first phase of our fi initiative, we have had success as regards creating access through opening of banking outlets by banks and also in opening bank accounts for large number of individuals in the rural areas. going forward our idea is to enable more transactions in these accounts by providing more credit products, which will not only help rural people to avail of credit at comparatively lower rates of interest but at the same time also make the bc model viable for banks. banks have been advised to leverage upon the direct benefit transfer initiative of the government of india for linking all the individuals to the banking system and for utilizing the large amounts likely to be credited in these accounts for encouraging issue of deposit and credit products. financial literacy and education we have adopted an integrated approach for financial inclusion wherein the supply side initiatives will be ably supported by initiatives on the demand side. in this direction banks will have to elevate financial literacy and awareness drives to make people understand the bis central bankers ’ speeches benefits of linking with the

forces. essentially, a long period of relatively rapid growth has taken large numbers of households across a threshold at which they begin to look for nutritional diversification. the predominance of cereals in the typical household diet gives way to greater balance and a consequent increase in the demand for proteins – pulses, milk, meat, fish and eggs –, vegetables and fruit. it is no surprise that these items have been the primary causes of food inflation in the recent period. further, as chart 3 clearly shows, as far as proteins are concerned there is a significant deviation from an earlier trend, with no significant sign of reverting to the more moderate trend, unlike non - protein items. the implication is that, as long as growth is leading to rising household incomes, particularly at the lower end of the income distribution, the pressure on food prices resulting from nutritional diversification will continue. the enduring solution to persistent demand - supply imbalances in food is to rapidly increase supply. this is exactly what the green revolution did. the combination of inputs that achieved that success is well - known and some lessons may yet be relevant. the basic principles, however, are quite clear. production of the relevant items has to be increased, mostly by increasing productivity. cultivation risks have to be mitigated for farmers to find these products more attractive. transportation, storage and distribution efficiency have to be increased to keep losses and distribution margins down. these may seem obvious points, even cliches, but there is no getting around them. there will be some generic strategies and some crop - specific ones, which makes it worthwhile to approach the problem from a wider perspective. a first step has been taken by the government in setting up the national mission on protein supplements, from which a concrete action plan needs to emerge quickly. in its absence, the likely scenario is one of persistent food inflation and, from the allimportant perspective of quality of life, persistent nutritional imbalances. this is not a recipe for sustainable growth. iii. human capital india is the second most populous country in the world and will become the most populous in a couple of decades. it is also one of the youngest and will remain so for some decades to come. at one level, this “ demographic dividend ” provides an enormous opportunity. chart 4 shows the contrasting demographic transition in india and china over the next two decades. the chinese growth story over the past three decades has been well chronicled and i don ’ t bis