India insisted that the bank tax can not be an alternative to better regulation in preventing another global financial crisis. At the same time, he came upon a proposal from the International Monetary Fund and Gordon Brown, former British Prime Minister.
New Delhi opposes increasing the tax burden on the mainly Indian state banking system and foreign financial institutions in a context where one of the world's fastest growing major economy is trying to expand financial services, quickly for most of his 1.2 million persons.
"I have great confidence in the strength of the Indian banking system," Mr. Mukherjee said at a conference on financial inclusion in the Indian capital on Monday. In G20: "I do not agree that there is a tax on banks to bring discipline. Regulatory structure is quite adequate. They can deliver the goods."
Minister wants banks to cover the technology at the initiative of business model to provide low-cost financial services to the country's short bank accounts and financial literacy. The inability to accept what he called "enormous challenges" related to coverage of 600,000 villages in the country would threaten the stability of India's rapid economic growth, he warned.
Only about 5 percent of "village India" are bank branches, and about 65 percent of the population has no access to banking activities, in accordance with the Confederation of Indian Industry.
Reserve Bank of India has given to commercial banks until March 2012 to develop business models that will prioritize the wider dissemination of savings, lending, insurance and money transfer products. Currently, India has 64,000 branches, or one branch of the bank's 16,000 people and 80,000 ATMs.
Mr. Mukherjee holds talks between the leaders of state-owned banks and the Chief Ministers of southern states of India this week to consider including in finance, he said, "mission mode" to the National Congress Party-led government.
India, as we know, underbanked market of their size. Financial assets represent 160 percent of gross domestic product. This makes India on a par with Indonesia, but behind China's 220 percent.
Janmejaya Sinha, chairman of Boston Consulting Group (Asia Pacific), said that Indian households 204m, 135m, were excluded from the formal financial system. Only 13 percent of Indian debit cards, 10 percent of policyholders of life, and only 1 percent of by-products of life insurance.
In their research, Boston Consulting Group has found widespread ignorance of finance. Mr. Sinha said the landless workers in the eastern state of Orissa made a mistake "banks in police stations and avoided them."
Chanda Kochhar, executive director of ICICI Bank, the country's largest private commercial bank, said banks in India were ready to assume the costs of expanding banking, provided that the statutory conditions have been relaxed.
Ms. Kochhar said government incentives for the expansion of banking services, there is no need. "The banks have to do it," she said. "I do not think they really need to do much on the government side."
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