Ep. 689: Democratise Credit to Create Jobs

Now that we have JAM, people want bread. Financial inclusion has been bandied about for decades with limited success but JAM (Jan Dhan, Aadhaar, Mobile) brings new hope. Sridhar Krishna and Aarushi Kataria are working on a project at the Takshashila Institution on policy initiatives to help create 20 million jobs each year in India. In this episode, they talk about how access to credit is limiting growth. They discuss the RBI approach paper on the national policy for financial inclusion and the UNCTAD policy framework for improving access to finance. They explain why rural women are a good target segment alongside small and medium enterprises for credit access and offer ideas for bridging the digital divide in this episode.

Suggested Readings:

Global Financial Development Report – Banking regulation and supervision a decade after the global financial crisis 2019-2020

The priority sector lending India needs, Janmajeya Sinha and Ruchin Goyal

Giving credit where credit is due, Goldman Sachs Global Markets Institute

Entrepreneurship policy framework and implementation guidance, UNCTAD

Closing gender gaps in India – does increasing women’s access to finance help?, IMF working paper

National strategy for financial inclusion – RBI approach paper

The rural urban divide: why cash is still king in India’s rural regions, Amit Nigam

Is Gramin Bank sustainable, Shahidur Khandkar, B.Khaliliy, Z.Khan

Microcredit was a hugely hyped solution to global poverty. What happened? S.Wykstra

What can India learn from Bangladesh’s microfinance institutions? Prasanna Mohanty