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Rs 2,000 crore fund to push financial inclusion: RBI

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RBI today announced merger of two funds to create a new Financial Inclusion Fund with a corpus of Rs 2,000 crore to support 'developmental and promotional activities' for expanding reach of banking services.

After completion of initial five years, RBI said it has now been decided to merge both the Financial Inclusion Fund and Financial Inclusion Technology Fund into a single Fund Financial Inclusion Fund (FIF) Guidelines of Financial Inclusion Fund.
• The overall corpus of the new FIF will be 2000 crore rupees.
• Contribution to FIF would be from the interest differential in excess of 0.5 percent on RIDF and STCRC deposits on account of shortfall in priority sector lending kept with NABARD by banks.
• All the assets and liabilities of the erstwhile FITF as well as prior commitments from FITF for projects already sanctioned will be transferred to/reimbursed from FIF.
• The Fund will be in operation for another three years or till such period as may be decided by RBI and Union Government in consultation with other stake holders.