ABSTRACT
This chapter talks about the future course of action for inclusive finance and the role of a central banker. It argues that the role of RBI after the developmental phase is largely to encourage innovation, provide for a solid consumer protection framework and be open to frontier areas – particularly the digital finance space.
The chapter also provides the view that the role of RBI should be sharply defined, and the regulator should only be reacting to aspects that are essentially in the market place. For instance, it argues the question of whether there should be large number of small banks, or whether the banking system including the rural banking system should consolidate should be left to the players rather than the regulator and takes a minimalistic view of regulator vis-à-vis financial inclusion.
