A Study of Financial Inclusion in India
FINANCIAL INCLUSION
INTRODUCTION
The prophecy of Millennium Development goals of U.N. i.e. “growth with equity” clearly envisages that the growth spree of the globe in the 21st century has left some people behind the time. Handful of the global populace are still languishing in the vicious circle of poverty & are cast aside by those who are economically stronger & swifter in the sway of globalization & liberalization. For sustenance/better growth of the world, the deprived sections should be dragged into the mainstream of growth. This is because of the fact that poverty any where is a grave threat to prosperity everywhere. 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”.
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. Financial products& services are identified as basic banking services like deposits accounts, institutional loans, access to payment, remittance facilities & also life & non life insurance services. The following are the denotation & connotation of financial inclusion in India.
1.Affordable credit
2.Savings bank account
3.Payments & Remittance
4.Financial advice
5.Credit/debit cards
6.Insurance facility
7.Empowering SHGs (self help groups)
An inclusive financial system facilitates efficient allocation of productive resources and thus can potentially reduce the cost of capital. An all-inclusive financial system enhances efficiency and welfare by providing avenues for secure and safe saving practices and by facilitating a whole range of efficient financial services like easy day-to-day management of
INTRODUCTION
The prophecy of Millennium Development goals of U.N. i.e. “growth with equity” clearly envisages that the growth spree of the globe in the 21st century has left some people behind the time. Handful of the global populace are still languishing in the vicious circle of poverty & are cast aside by those who are economically stronger & swifter in the sway of globalization & liberalization. For sustenance/better growth of the world, the deprived sections should be dragged into the mainstream of growth. This is because of the fact that poverty any where is a grave threat to prosperity everywhere. 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”.
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. Financial products& services are identified as basic banking services like deposits accounts, institutional loans, access to payment, remittance facilities & also life & non life insurance services. The following are the denotation & connotation of financial inclusion in India.
1.Affordable credit
2.Savings bank account
3.Payments & Remittance
4.Financial advice
5.Credit/debit cards
6.Insurance facility
7.Empowering SHGs (self help groups)
An inclusive financial system facilitates efficient allocation of productive resources and thus can potentially reduce the cost of capital. An all-inclusive financial system enhances efficiency and welfare by providing avenues for secure and safe saving practices and by facilitating a whole range of efficient financial services like easy day-to-day management of