Inclusive Banking

TABLE OF CONTENTS

Introduction……………………………………………………………………………..…….2
Inclusive Banking………………………………………………………………......................3
Bottlenecks…………………………………………………………........................................3
Way Forward……………………………………………………………………………….....3
Why Priority Sector Lending………………………...………………………………….…….4
New Initiatives…………….…………………………………………………………….…….5
Plan for ICICI Bank……..………….……………………….…………………………….…..5
Product…………………………………………….…………………………………………..6
Channels of Distribution……………………………………………………………………....6
Credit Guarantee………………………………………………………………………………7
Costs Incurred…………………………………………………………………………………7
Selling Opportunities………………………………………………………………………….7
References………………………………………………………………..……………....…....8

INTRODUCTION
WHAT IS 'FINANCIAL INCLUSION'?
Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society, in contrast to financial exclusion where those services are not available or affordable.
Access to financial products is constrained by several factors which include: lack of awareness about the financial products, unaffordable products, high transaction costs, and products which are not convenient, inflexible, not customized and of low quality. Financial Inclusion promotes thrift and develops culture of saving and also enables efficient payment mechanism strengthening the resource base of the financial institution which benefits the economy as resources become available for efficient payment mechanism and allocation. The empirical evidence shows that countries with large proportion of population excluded from the formal financial system also show higher poverty ratios and higher inequality. If we are talking of financial stability, economic stability and inclusive growth with stability, it is not possible without achieving Financial Inclusion. Thus financial inclusion is no longer a policy choice but is a policy compulsion today. And banking is