About half of the Self-Help Groups (SHGs) are yet to be linked to formal credit, and a large proportion of small and marginal farmers (SMFs) still lack access to bank financing, said RBI Deputy Governor J Swaminathan.

Another class of potential borrowers which has remained underserved are the MSMEs and within that, those led by women, he said in his keynote address at a recent Conference for Lead District Managers (LDMs) of Maharashtra held in Tadoba, Chandrapur, Maharashtra.

“Therefore, when we adopt an empirical approach coupled with your on-ground experience for designing of a credit plan, the credit requirements of such segments can be effectively addressed through suitable Potential Linked Credit Plans as well as in block and district-level credit strategies.

“The idea is to base your plans on a holistic assessment of the district. The ultimate objective is to bring about measurable outcomes through systematic designing of credit plans,” the Deputy Governor said.

Swaminathan observed that LDMs need to lay special emphasis on furthering financial literacy.

“Taking the baton ahead, you may also create awareness and direct or motivate towards greater adoption of digital financial inclusion. Financial literacy is a cornerstone of holistic inclusion, empowering individuals to make informed decisions,” he said.

Further, members of the public should be made aware of various financial products available to them, be it social security products such as insurance and pension schemes, which will cover the risks, or category-specific loan products, which will enable them to undertake productive economic activities.

In addition, a special focus needs to be given to Digital Financial Literacy to improve public confidence in undertaking digital transactions.

Swaminathan noted that 410 districts and 13 states are digitally enabled across the country as of date, and six Union Territories have achieved 100 per cent coverage of districts under the ‘Expanding and Deepening of Digital Payments Ecosystem Programme (EDDPE)’.

“I hope to see the state of Maharashtra also in this list soon. For this, I request all the stakeholders including LDMs for effective co-ordination for successful execution of the programme,” he said.

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