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financial inclusion

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financial inclusion
1. TOPIC

“STUDY ON IMPACT OF FINANCIAL INCLUSION IN RURAL AREAS WITH SPECIAL REFRENCE TO SBI IN MANDLA DISTRICT”

2.INTRODUCTION
India’s growth story in the years ahead will be the story of inclusive growth in which growth will not be treated as an end itself, though faster growth will be the main goal. Our twelfth five year plan also focuses for inclusive growth which states faster, more inclusive and sustainable growth.
FINANCIAL INCLUSION
Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society, in contrast to financial exclusion where those services are not available or affordable. An estimated 2.5 billion working-age adults globally have no access to the types of formal financial services delivered by regulated financial institutions. For example in Sub-Saharan Africa only 24% of adults have a bank account even though Africa's formal financial sector has grown in recent years. It is argued that as banking services are in the nature of public good; the availability of banking and payment services to the entire population without discrimination is the prime objective of financial inclusion public policy.

The timely delivery of banking services to the vulnerable groups such as weaker sections and low income groups at an affordable cost in a fair and transparent manner by mainstream Institutional players.
The essence is to ensure a holistic set of services to every individual and enable them to understand and access the financial services.

REASONS FOR EXCLUSION
(i) Geographical Location – remoteness of residence hilly & sparsely populated areas with poor infrastructure distance from bank branch branch timings
(ii) Economic Factors low income low assets
(iii) Social Factors- ease of availability of informal credit culture Gender
(iv) Financial illiteracy- illiteracy lack of awareness
(v) Documentation

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