Financial Inclusion - the Scope and Effect in Indian Economy
FINANCIAL INCLUSION IN INDIA- IMPACT & CHALLENGES
Financial inclusion in India – The way forward
ABSTRACT:
The government of India & RBI has out with a major initiative towards ensuring the inclusive growth through financial inclusion so that the access of financial service will reach to the mass population.
The main theme of this paper is to highlight the requirement of financial inclusion and to estimate the social benefit from these initiatives.
As Reserve Bank of India data shows that as many as 139 districts suffer from massive financial exclusion, with the adult population per branch in these districts being above 20,000 and only 3 percent with borrowings from banks. On the assumption that each adult has only one bank account (which does not hold good in practice, so that actual coverage is likely to be worse) on an all India basis, 59 percent of the adult population in the country has bank accounts. 41 percent of the population is, therefore, unbanked. In rural areas the coverage is 39 percent against 60 percent in urban areas. The unbanked population is higher in the poorer regions of the country, and is the worst in the North-Eastern and Eastern regions.
This paper seeks to provide evidence on impact of financial inclusion in India, the various issues of financial exclusion, and present status of financial services of India. This paper studied secondary data to draw the conclusion.
The study found that with this initiative the poorer section of the society will get benefit for their development and growth.
Objective of the Paper
• Highlight the issue of financial exclusion
• Impact on Indian economy of financial inclusion
• RBI initiatives & guideline
• Scope & challenges of financial inclusion in India
• Further suggestion
Meaning of Financial Inclusion
“The process of ensuring access to appropriate financial products and services needed by vulnerable groups such as weaker sections and low income groups at an affordable cost in a fair and
Financial inclusion in India – The way forward
ABSTRACT:
The government of India & RBI has out with a major initiative towards ensuring the inclusive growth through financial inclusion so that the access of financial service will reach to the mass population.
The main theme of this paper is to highlight the requirement of financial inclusion and to estimate the social benefit from these initiatives.
As Reserve Bank of India data shows that as many as 139 districts suffer from massive financial exclusion, with the adult population per branch in these districts being above 20,000 and only 3 percent with borrowings from banks. On the assumption that each adult has only one bank account (which does not hold good in practice, so that actual coverage is likely to be worse) on an all India basis, 59 percent of the adult population in the country has bank accounts. 41 percent of the population is, therefore, unbanked. In rural areas the coverage is 39 percent against 60 percent in urban areas. The unbanked population is higher in the poorer regions of the country, and is the worst in the North-Eastern and Eastern regions.
This paper seeks to provide evidence on impact of financial inclusion in India, the various issues of financial exclusion, and present status of financial services of India. This paper studied secondary data to draw the conclusion.
The study found that with this initiative the poorer section of the society will get benefit for their development and growth.
Objective of the Paper
• Highlight the issue of financial exclusion
• Impact on Indian economy of financial inclusion
• RBI initiatives & guideline
• Scope & challenges of financial inclusion in India
• Further suggestion
Meaning of Financial Inclusion
“The process of ensuring access to appropriate financial products and services needed by vulnerable groups such as weaker sections and low income groups at an affordable cost in a fair and