Financial Inclusion in India & Benefits of Inclusive Financial Growth

Financial Inclusion is the delivery of banking and financial services to disadvantaged and low income segments of society at affordable costs. The primary objective to this policy is to provide these services to the entire population without discrimination.

Financial inclusion means credit for productive purposes,credit for healthcare emergencies , safe means of remunerated savings, an easy way to make payments and remittances. It means insurance and pensions. It means financial literacy and consumer protection.

A large number (more than half) of country’s population does not have a bank account. One of the main problems is that banks expect customers to walk up to them where as NBFCs plays more active role in financial inclusion as their staff reach out to customers. Another problem is that banks think it, as a corporate social responsibility and a regulatory obligation.

Banks should give adequate attention to financial inclusion and for this they must view financial inclusion as a feasible business proposition. To get success in financial Inclusion, two things are required i.e. last mile connectivity and low-cost mode.

Financial Inclusion Enables People to the Following Things

  • Access financial markets
  • Access credit market for productive purpose
  • Learn financial matters ( financial education)

Financially Excluded Sections Largely Comprise Of the Following:

  • Women
  • Marginal farmers
  • Landless labourers
  • Self employed and unorganized sector enterprises
  • Migrants
  • Senior citizens
  • Socially excluded groups etc.

Benefits of Inclusive Financial Growth

  • Equal growth of society: An economy could become developed only when the society grows up equally. Financial Inclusion helps the society to grow equally. In this way , it also helps to remove the poverty from the society
  • Easy Financial Transactions: Inclusive finance provides banking related financial transaction in an easy and speedy way.
  • Services related to saving and financial products: People get safe saving along with other related services like insurance cover, entrepreneurial loans, payment and settlement facility etc.
  • Increasing national income: our national income growth increases with increased business opportunities.
  • Increased Employment and Business Opportunities: Financial access attracts global market players to our country that result in increased employment and business opportunities.