SC judge highlights need to provide the poor with efficient access to financial services – The Hindu BusinessLine

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Says move will also contribute to improvement of resource allocation, development of financial markets and system

Justice S Abdul Nazeer, Judge of Supreme Court of India, has said that providing efficient access to credit and other financial services to the poor is important for many reasons.

Speaking on the topic ‘Constitutional Philosophy and Banking’ at the 98th Founders’ Day celebrations of Karnataka Bank on Friday, he said, “Efficient provision of savings, credit and insurance facility can enable the poor to smoothen their consumption, manage risk better, gradually build assets, develop micro enterprises, enhance income earning capacity, and generally enjoy improved quality of life which is a constitutional goal that we as a nation are bound to strive towards.”

He said the provision of financial services to the poor can also contribute to improvement of resource allocation, development of financial markets and system, and ultimately economic growth and development of the entire nation.

Institutional sources

Quoting Union Ministry of Statistics and Programme Implementation data, Justice Nazeer said more and more households have gained access to institutional sources of credit. Ever since people have started receiving subsidies directly in their accounts, transparency in transaction has brought millions of account holders on paper.

He said the direct transfer of sale proceeds to farmer’s bank account, and increase in use of ATM cards have put their financial transaction on record. “I am given to understand this has reduced the hurdles farmers used to face while accessing credit from a bank,” he said.

ISO certification

He said the policy environment is still not entirely favourable to the sustainable growth of microfinance. Mahabaleshwara MS, Managing Director and Chief Executive Officer of Karnataka Bank, said the Risk Management Department of the bank has got ISO 9001:2015 for risk management practices.

This certification will further improve service efficiency of risk management department with repeatable and predictable outcomes, heightened employee morale, boost confidence in the public, and, in turn, enrich the reputation of the bank.

P Pradeep Kumar, Chairman of Karnataka Bank, presided over the programme.