Expanding Access to Finance for Small Businesses in India: A Critique of the Mor Committee's Approach Part 1. Background and the Supply Gap

The Reserve Bank of India's Committee on Comprehensive Financial Services for Small Businesses and Low Income Households and its report are part of an explicit and dedicated effort to expand the ambit of financial services from partial to full inclusion of small businesses and low-income households in India. The report, with its visionary and reformative recommendations, aims at significantly and fundamentally overhauling the entire banking industry in India. This blog critiques the Committee's approach with respect to enhancing access to financial services for small businesses in India.