Usha Thorat, Director, Centre for Advanced Financial Research and Learning (CAFRAL) and former Deputy Governor, Reserve Bank of India (RBI), was at the Indian School of Business (ISB) recently. Professors Rajesh Chakrabarti and Krishnamurthy Subramanian interviewed her regarding financial inclusion and the role of microfinance companies and Urban Cooperative Banks (UCB) in improving financial access.
You have played a pivotal role in reinforcing financial inclusion during your tenure at the RBI. We can begin by addressing that issue broadly. There is a statistic by McKinsey indicating that in 2005, only 47% of India's household savings was tapped by the financial system. How have we progressed since then?