Financial inclusion, remittance cost focus areas in G20 meeting

As the first G20 Global Partnership for Financial Inclusion (GPFI) meeting is set to kick off in Kolkata from Monday, a litany of issues are likely to be discussed.

These include unlocking digital financial infrastructure for advancing financial inclusion, reducing cost of remittances, assessing progress made in implementation of G20 high-level principles and availability of finance for small and medium enterprises (SMEs).

Chanchal Sarkar, economic advisor, department of economic affairs, said the main purpose of the meeting is to ensure access and usage to the unbanked and left out. It would provide opportunities for higher income and growth, which would help in the next stage of economic development.

The first of the GPFI working group meetings is being held in Kolkata from January 9-11. There are indications that West Bengal Chief Minister Mamata Banerjee may attend on Monday, said Sarkar.

Including Kolkata, four meetings of the GPFI working group – part of the finance track – are likely to be held in different parts of the country. The Centre, in an effort to make it a pan-Indian event, had chosen 40 locations as venues for the G20 meetings.  

Sarkar said that reducing remittance cost was a core area of interest among G20 leaders. “They are working to reduce the cost and a target has been set to bring it down to 3 per cent by 2027,” he added.

Though it varies from country to country, Sarkar said that, at present, it is about 6 per cent on an average. A reduction would particularly benefit low-wage earners such as labourers.

In Kolkata, apart from the plenary meetings, there would be a symposium that would see participation of 12 international speakers. Among the side events, an exhibition would showcase innovative financial products.

Bandhan Bank, NPCI and Aadhaar would explain how innovative digital technologies have changed the landscape for digital financial inclusion in India.

A domestic outreach programme involving a seminar on financial literacy is aimed at educating about 1,800 school students on various financial aspects and services, investment, insurance and fraud protection.