Role of Bc/Bf in Financial Inclusion

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In partial fulfillment for the award of the degree







I wish to express my gratitude to NABARD, Haryana, for giving me an opportunity to be a part of it and enhance my knowledge by granting permission to do my summer project under NABARD Summer internship program.

I would like to express my gratitude towards Dr. D.K Banerjee, Director, Asia Pacific Institute of Management.

I’m grateful to my Mentor Mr. R.K. Singhal (Asia Pacific Institute of Management) for her help in every step of the way during the tenure of my project.

I would like to thank Mr. Naik (DGM, NABARD Haryana), Mr. Ravi Shankar (DDM Panipat, NABARD Haryana) and Mr. K.K. Gupta (DDM Panchkula & Ambala, NABARD Haryana) to be my mentor in my project and for their guidance ship at every stage.

I am also very grateful to my program director Mr. Ashutosh ( Manager, Regional Office NABARD Haryana).

I am also very thankful to Managers of PNB, HGB and all other banks for their invaluable guidance and cooperation during the course of the project. They provided me with their assistance and support whenever needed that has been instrumental in completion of this project.




Financial services actively contribute to the humane & economic development of the society. These lead to social safety net & protect the people from economic shocks. Hence, each & every individual should be provided with affordable institutional financial products/services popularly called “Financial Inclusion”. Despite witnessing substantial progress in financial sector reforms in India, it is disheartening to note that nearly half of the rural households even today do not have any access to any source of funds- institutional or otherwise. Hardly one-fourth of the rural households are assisted by banks. Hence the major task before banks is to bring most of those excluded, i.e. 75% of the rural households, under banking fold.

There is a need for the formal financial system to look at increasing financial literacy and financial counseling to focus on financial inclusion and distress amongst farmers. Indian banks and financial market players should actively look at promoting such programs as a part of their corporate social responsibility. Banks should conduct full day programs for their clientele including farmers for counseling small borrowers for making aware on the implications of the loan, how interest is calculated, and so on, so that they are totally aware of its features. There is a clearly a lot requires to be done in this area.

This enables the customer to remit funds at low cost. The government can utilize such bank accounts for social security services like health and calamity insurance under various schemes for disadvantaged. From the bank’s point of view, having such social security cover makes the financing of such persons less risky. Reduced risk means more flow of funds at better rates. Access to appropriate financial services can significantly improve the day-today management of finances. For example, bills for daily utilities (municipality, water, electricity, telephone) can be more easily paid by using cheques or through internet banking, rather than standing in the queue in the offices of the service. A bank account also provides a passport to a range of other financial products and services such as short term credit facilities, overdraft facilities and credit card. Further, a number of other financial products, such as insurance and pension products, necessarily require the access to a bank account. Employment Guarantee Scheme of the Government which is being rolled out in...
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