Financial Inclusion

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Economic Report
Economic Report
Financial Inclusion
* An Indian perspective
Financial Inclusion
* An Indian perspective

Rashmi Rekha Baruah
10060221066
TY B.Sc. Economics
Symbiosis School of Economics, SIU
Rashmi Rekha Baruah
10060221066
TY B.Sc. Economics
Symbiosis School of Economics, SIU

Content

Executive Summary2
Objective of the report3
Research methodology3
1. Introduction to Financial Inclusion 4
1.1 Meaning4
1.2 Scope5
2. The Indian Scenario..........................................................................................6 2.1 Overview………………………….…………………………………………………………………….6 2.2 Government Initiatives and role in Inclusive finance………………………………6 2.2.1 Financial literacy initiatives…………………………………………….………………8 3. The road ahead………………………………………………………………………….………………10 4. Conclusion…………………………………………………….……………………………………………11 5. Bibliography……………………………………………………………………………………………….12

Executive Summary
The conventional theories of growth and development focussed mainly on the development of capital, labour, infrastructure, industries and human resources. With the progress of the banking system across the globe, finance has now become the most significant aspect of growth and development. Inclusive finance emerged as one of the critical component of the inclusive growth envisaged for the overall development of the economy and also, a key aspect to the policy of achieving inclusive growth and development. Pre – new economic policy reforms, Indian banks were more inward looking, concerned with their profits. Banking services were greatly used by a limited segment of the people. Class banking was prevalent during those days and financial inclusion was purely an institutional issue and but it has evolved and has redefined itself. Post nationalisation there was transformation from class banking to mass banking. (Saveeta, 2005) With the emergence of micro-finance, financial literacy tools and other government sponsored schemes such as Kisan Credit Card (KCC); it became imperative to create a mode for inclusion of the unbanked and the under-banked population into the ambit of institutional finance. The paper will talk about the basics of Financial Inclusion: definition, scope, kinds of organisations involved, who are the financially excluded sections and an Indian perspective in brief. It will also discuss how various government and also business correspondent work in this direction for larger coverage and deeper penetration of financial literacy to achieve financial inclusion.

Objective of the report

The report will study the concept of financial inclusion and analyse the initiatives taken for financial inclusion in India. It will also the look into the role of various institutions and intermediaries and their potentiality in attaining and promoting financial inclusion and will make a crystal-gazing on the future of financial access to the unbanked population of India. Research methodology

The research will start with the theoretical framework of the concepts of financial inclusion and will study the various institutions involved in relation to expansion of financial access to the people. The study will be based on secondary data taken from different sources including books, journals, reports of various committees and government organisations and later inferences will be drawn from the given data to draw meaningful conclusion.

1. Introduction to Financial Inclusion
1.1 Meaning of financial inclusion

Financial inclusion is a process of making formal financial services accessible and affordable to all. In the Indian context, Rangarajan Committee (Report of the Committee on Financial Inclusion in India (2008)) defines it as: "Financial inclusion may be defined as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost."...
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