Introduction to Indian Economy
India is a country with diverse socio-economic condition along with diverse agro climatic situation. The growth trend of the Indian economy over the last few years appears to indicate the beginning of a new phase of higher growth. Though few decades ago, our country' economy was agricultural dependent one, now it more of service dependent and growth rate of agriculture is just above 2% and it contributes less than 22% to our country's GDP with 60% of the population depend 1 Electronic copy available at: http://ssrn.com/abstract=1353125
on agriculture. Further, this development or growth is not an even one, throughout the country, while urban regions are growing at greater rate; rural areas are still remaining stagnant. Further the Gini Index shows, the gap between the rich and the poor households keeps on increasing, thereby condition of the poor worsening further. As per the statistical data, around 26% of the population are below the poverty line, but let us first try to understand what poverty is and how it is measured in India and Internationally.
Statistics of Banks in Tamilnadu: Total Banks in Tamilnadu Total Bank Offices State Bank Group Nationalized Banks Other Scheduled Banks (Commercial) Regional Rural Banks Foreign Banks Source: RBI
Number Branches 71 8 19 27 3 14 4880 728 2822 1093 215 22
What is Financial Inclusion?
Financial Inclusion is about delivery of banking services at an affordable cost to vast sections of disadvantaged, first step in FI is to facilitate people in getting basic facilities like food, shelter and clothing to the people and then comes the provision of bank account, wherein they can save whatever little they can. Financial Inclusion can be thought of in two ways. One is exclusion from the payments system –i.e. not having access to a bank account. The second type of exclusion is from formal credit markets, requiring the excluded to approach informal and exploitative markets.
Electronic copy available at: http://ssrn.com/abstract=1353125
FINANCIAL SOURCES & SERVICES ACCESSIBLE TO A COMMON MAN
State Bank & its associates Public Sector Banks Private Sector Banks RRB & LAB