RBI's Thorat on banking in the Hinterland

In the speech 'Banking in the Hinterland' given on 14 February Usha Thorat of the Reserve Bank of India said competition in urban areas is squeezing bank margins.

"Even though agriculture contributes only 20 per cent of GDP, the rural population constitutes 70 per cent of population and as reported accounts for 60 per cent of consumer durable market. This implies that there is an untapped business potential for aggressive banking in the rural areas. The challenge lies in locating these areas and

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