Financial Inclusion
Content
Chapter 1
1. Introduction 2. Financial Inclusion 3. Rationale for Financial Inclusion 4. Financial Inclusion in India 5. Scope of Financial Inclusion 6. Profile of Syndicate Bank 7. Contribution of Syndicate bank Towards Financial Inclusion 8. Objectives 9. Limitations 10. Methodology
1.1 Introduction
A well functioning financial system empowers individuals, facilitates better integration with the economy, activity contributes to development and affords protection against economic shocks. Inclusive finance through secure savings, appropriately priced credit and insurance products, and payment services helps vulnerable groups such as low income groups, weaker sections, etc. To increase incomes, acquire capital, manage risk and work their way out of poverty.
Notwithstanding the efforts made so far, a sizeable majority of the population, particularly vulnerable groups, continue to remain exluded from the opportunities and services provided by the financial sector. With a view to correct this situation and extend the reach of the financial sector to such groups by minimizing the barriers to access as encountered by them, financial inclusion has been come into existence.
India is the fourth largest economy in the world on a purchasing power parity (PPP) basis and twelfth on a nominal basis. With the real GDP for ecasted to grow by 5.7% in the year 2009-10, the Indian economy is marching ahead. This rapid expansion is expected to continue as growth in the services and high technology manufacturing sector accelerates. Agriculture, which continues to support around 60% of the population, has grown by a mere 2.7% in the second quarter of 2008-09. In addition, the organized sector employment presently comprises less than 10% of the workforce, leaving the vast majority of the working population with irregular income streams.
Notwithstanding the rapid increase in overall GDP and per capita income in recent
Chapter 1
1. Introduction 2. Financial Inclusion 3. Rationale for Financial Inclusion 4. Financial Inclusion in India 5. Scope of Financial Inclusion 6. Profile of Syndicate Bank 7. Contribution of Syndicate bank Towards Financial Inclusion 8. Objectives 9. Limitations 10. Methodology
1.1 Introduction
A well functioning financial system empowers individuals, facilitates better integration with the economy, activity contributes to development and affords protection against economic shocks. Inclusive finance through secure savings, appropriately priced credit and insurance products, and payment services helps vulnerable groups such as low income groups, weaker sections, etc. To increase incomes, acquire capital, manage risk and work their way out of poverty.
Notwithstanding the efforts made so far, a sizeable majority of the population, particularly vulnerable groups, continue to remain exluded from the opportunities and services provided by the financial sector. With a view to correct this situation and extend the reach of the financial sector to such groups by minimizing the barriers to access as encountered by them, financial inclusion has been come into existence.
India is the fourth largest economy in the world on a purchasing power parity (PPP) basis and twelfth on a nominal basis. With the real GDP for ecasted to grow by 5.7% in the year 2009-10, the Indian economy is marching ahead. This rapid expansion is expected to continue as growth in the services and high technology manufacturing sector accelerates. Agriculture, which continues to support around 60% of the population, has grown by a mere 2.7% in the second quarter of 2008-09. In addition, the organized sector employment presently comprises less than 10% of the workforce, leaving the vast majority of the working population with irregular income streams.
Notwithstanding the rapid increase in overall GDP and per capita income in recent