Financial inclusion can be a lot aided by enhancement in technology. Improvement in technology will lead to better delivery of banking services and products to the unbanked areas at affordable costs, feels deputy governor of Reserve Bank of India, Mr KC Chakrabarty.

Chakrabarty said that with the adoption of technology, taking out banking to the masses can be turned to a profitable business.

"When it comes to technology, money is not the problem. Effective utilisation of technology is. Taking the benefit of technology to the masses is the problem," said the Deputy Governor.

"Have the banks been able to deliver what they were expected to deliver with adoption of technology?" Dr Chakrabarty asked and thereby answered that the response to this question is not very bright as of now.

"We need to remember that we should work towards bringing nearly 400 million citizens to the formal fold of the banking sector. It is not just about opening ‘no frill' accounts. As of today, 75 million ‘no frill' accounts have been opened but there are hardly any transactions in them," he said.