Volume : III, Issue : III, March - 2013

Financial Inclusion in India: A Theoritical Assesment

P. Arulmurugan, P. Karthikeyan, N. Devi

Abstract :

Access to finance by the poor and vulnerable groups is a prerequisite for poverty reduction and social cohesion. More than 150 million poor people have access to collateral – free loans. However, there are still large sections of the world population that are excluded from the financial market. In India half of the poor are financially excluded from the country’s main stream of banking sector. Financial inclusion denotes delivery of financial services at an affordable cost to the vast sections of the disadvantaged and low–income groups. The various financial services include credit, savings, insurance and payments and remittance facilities. The paper discuss about the current status of Financial Inclusion in India and the World general, highlight the measures taken by the Government of India and RBI for promoting financial Inclusion and highlight the linter–linkages between Socio – Economic welfare and Financial Inclusion. In India, the apex body RBI takes various inclusive steps for implementing the Financial Inclusion program. These steps include Opening of No – Frill Accounts (NFA), Relaxation of KYC norms, Engaging Business Correspondents (BCs), opening of anches in unbanked rural centers, Financial Literacy Programmes etc. The study also deliberates about inter–linkages between socio economic welfare and financial inclusion. The socio–welfare programmes like the NREGA, Direct Cash transfer, National Old Age pension Scheme are focused on implementing financial inclusion. This is primarily because it helps to ensure electronic cash transfers.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

P. Arulmurugan,P. Karthikeyan,N. Devi Financial Inclusion in India: A Theoritical Assesment Indian Journal of Applied Research, Vol.III, Issue.III March 2013

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