Financial Inclusion In India

Financial Inclusion has whetted the speed of development of banking industry in India. In order to face the bouts of non banking financial institusion, financial inclusion is being treated as an important weapon.The Committee On Financial Inclusion,2008,chairman,Dr. C. RANGARAJAN defined it as

“the process of ensuing access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker section and low income groups at an affordable cost.”

Basically, it means that even lower strata of society with less disposable income should also have bank accounts, can get immediate credit as well as avail the benefits of financial advisory services.The people who have been covered for this are

  • underprivileged people in rural areas┬álike farmers
  • underprivilaged people in urban areas like labourers,domestic help
  • unemployed
  • physically challenged

Reserve Bank Of India, has taken a lot of measures to ensure that proper banking facilities is provided to all. It has started many such programmes like

  1. Opening of RRB’s (regional rural banks)
  2. Self help Groups
  3. Cooperative movement
  4. liberalised branch expansion
  5. overdraft facilities even in savings account

But it lacks in proving to be a huge success because of lack of any proper business model,technology and poor delivery modes.In 2007, total accounts per 100 person stood at a meagre of 54 accounts!

If given due importance this will help in reducing the dependence of people on non-banking financial institutions and indigenous bankers.

Cynosure of all eyes it has a long way to go ahead in proving its mettle and bridging the gap between the account holdels. Way to go !!!

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