Food inflation will defy government policies to remain in high single-digit levels in the long run, unless there is a change in an overwhelming bias among farmers towards staples such as wheat and rice, say economists and policymakers. A steady growth in population and rapidly rising income levels are adding to inflationary pressure at a time when agricultural productivity is showing a decline. A major reason is that the agriculture...

Banks will have to put in place a mechanism to verify that microfinance institutes (MFI) they finance do not charge exoRBItant rates to the final borrowers. The finance ministry has asked banks to ensure that MFIs, whom banks are financing, do not lend at rates more than 24% — all inclusive rates — to the ultimate borrowers. Some banks have recently inserted a clause while lending to MFIs that they...

The Prime Minister, Dr Manmohan Singh, on Friday reviewed the progress towards financial inclusion by banks in India. Dr Singh was briefed on the efforts being made by banks to reach banking services through information and communication technology based models and banking intermediaries to 73,000 rural habitations having population of over 2000 as per the 2001 census by March 2012. The Prime Minister also reviewed the safety and security measures...

Food inflation rose for the third week running as floods disrupted supplies, but most economists see food prices easing soon. Inflation in food articles in the new series with 2004-05 base was 15.1% for the week ended September 4, compared with 14.6% in the week before, data released on Thursday showed. The central bank chose to lift rates in its policy review on Thursday saying inflation is still a big...

`Financial Inclusion' as defined by the committee of financial inclusion is the process of ensuring access to financial services and timely and adequate credit, where needed by vulnerable groups, such as weaker sections and lower income groups at an affordable cost. Reserve Bank of India (RBI) has selected Baikunthpur village in Narayanpur block of Mirzapur district to provide banking services to the villagers under its financial inclusion programme. The programme...