New RBI Chief Raghuram Rajan to Focus on Mobile Banking and Aadhaar for Credit

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Raghuram Rajan took charge as the 23rd governor of the Reserve Bank of India (RBI), listing out many short-term measures to reverse the economy’s slide and to stabilise the country’s monetary system.

In his first speech as RBI governor, Rajan promised some bold reforms and quick action. Rajan will announce this first monetary policy on September 20 instead of September 17 as earlier scheduled.

Recognizing the substantial potential in the mobile banking sector, he said, “We will set up a technical committee to examine the feasibility of using encrypted SMS-based funds transfer using an application that can run on any type of handset,” he added.

He also plans to link the credit history of borrowers to their Aadhaar numbers. This will help banks to track the credit history of individuals and find out if he/she has defaulted on the loan repayments in the past.

Rajan announced the formation of an expert committee headed by former RBI governor Bimal Jalan to screen applications for new bank licences. The new licences will be issued in January.

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