Bangladeshi Nobel laureate Muhammad Yunus on Tuesday urged for changes in India’s legislation to set up banks for the poor.

Participating at the bicentenary celebrations of Presidency University, the founder of Grameen Bank said the existing banks within the current structure would not be able to serve the poor.

Calls for new laws

“I have been asking the Indian government to bring new laws for setting up new banks. The existing laws are for making banks for the rich. In order to bring financial services to the poor, a new legislation is required so that the country has banks for the poor,” he said referring to the Grameen Bank.

Many NGOs in India, who are dependent on financial assistance, have been running large micro-credit programmes, he said.

“They require limited banking licence so that they can function as banks. The government has started giving new banking licence which is good,” he said.

The banks now are like huge ships, that can sail across oceans, but the poor too should have access to banks, which are like small ships, he said.

Speaking about poverty and unemployment, Mr. Yunus said, “Poverty is not due to the poor people. It is created by the system.”

He said that “the poor are victims” of the system, adding that, “unemployment is being thrust upon them by the present societal system.”

“Why should today’s youth seek jobs. Instead, they should look for creating jobs for others. This wrong thinking has put all of us in the wrong direction,” Mr. Yunus said.