1. Subra, you make a valid point here, which self missed noticing.

    Yes, most scheduled Banks don’t want to service lower end strata (no profitability). Hence we have been private co-operative banks sprouting catering to this market, but most not able to survive. In Chennai, we have seen the hold of Benefit Funds (some good ones too, like Puraswalkam based Funds – but most are dubious) losing out on market-share for Gold Loans over the last 10 years. The State Co-op (Govt backed ones) have moved into such markets & have consolidated.

    But, we need more such initiatives. RBI can play a big role here.

  2. Dont see RBI or any regulator with vision. RBI came out looking better than others only because the others did horribly and RBI did nothing. It was not as though RBI had any great vision. ITs the Narasimha Rao effect. Though to be fair, doing nothing also requires some intelligence. But its inactive versus active.

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