Dr. Joji Chandran PhD
India is having the most widely distributed post office system in the world. With 1,55,333 post offices, the India post comes under the Department of Posts which is a part of the Ministry of Communications and Information Technology under the Government of India. The wide distribution network of India post is one important factor that favours india post as a channel for financial inclusion in India. The search of financial inclusion appears to be a tough task. Sustained growth of the nation and its continued prosperity depend critically on universal financial services covering all people. Further, empirical evidence shows that inclusive financial system significantly raises growth, alleviate poverty and expand economic opportunity. In India, the India post when linked to banks in a gradual way initially through saving and later through loan product is considered to be an effective strategy to ensure financial inclusion in this backdrop. This paper examines the scope of India Post in the inclusion (Access) of excluded poor households.
The delivery of financial services to the low income group at affordable cost is termed as financial inclusion. The term "financial inclusion" has gained importance since the early 2000s, and is a result of findings about the unavailability of banking services to the poor (financial exclusion) and its direct correlation to poverty. Financial inclusion is now a common objective for many central banks among the developing nations. The two approaches used for financial inclusion is microfinance and Islamic banking. Financial Inclusion covers a wide array of services by banking sector. According to Mor and Anath (2007) financial inclusion, at a minimum, may be interpreted to mean the ability of every individual to access basic financial services which include savings, loans and insurance in a manner that is reasonably...