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Financial inclusion aims to make banking services affordable for disadvantaged groups. It involves opening savings or current accounts. While the banking system has expanded, financial services have not reached low-income rural and urban groups due to lack of awareness. The government of India and RBI have launched programs like self-employment initiatives and microcredit to promote financial inclusion. However, these programs did not succeed because financial institutions did not prioritize outreach. For financial inclusion to work, banks must focus on daily transactions like savings, loans, insurance to better serve poor communities.

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25 views

Tutu 3

Financial inclusion aims to make banking services affordable for disadvantaged groups. It involves opening savings or current accounts. While the banking system has expanded, financial services have not reached low-income rural and urban groups due to lack of awareness. The government of India and RBI have launched programs like self-employment initiatives and microcredit to promote financial inclusion. However, these programs did not succeed because financial institutions did not prioritize outreach. For financial inclusion to work, banks must focus on daily transactions like savings, loans, insurance to better serve poor communities.

Uploaded by

putul6
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Financial inclusion with promotional activities.

Mr. Chitta Ranjan Mishra



This term broadly reIers to availability oI banking services at an aIIordable cost
to the disadvantaged and low income groups .The basic concept oI Iinancial
inclusion is having a saving or current account at any bank . Now-a-days the
banking system has become more dynamic and there is an increasing trend in the
number oI depositors in bank. But Iinancial services have not accessed to low
income groups in Rural and urban areas, because they have no awareness about
the Iinancial product and services and the Iinancial organization have not become
able to provide any banking services to the poor people

So the Government oI India, Reserve bank oI India and NABARD together
have initiated a number oI the Iollowing programs. Like

1-SelI Employment program

2-SHG-Bank linkage program

3-Post oIIices program

4-Village development program

5-Kissan credit card (KCC)

All these programs are poverty alleviation schemes oI the Government and the
Reserve bank oI India has initiated several measures to achieve the Iinancial
inclusion such as Iacilitating 'No Irill account Ior low deposits and credit.

All these programs were implemented in a proper way but no success was
achieved because the Iinancial institutions did not give importance to the
Iinancial services, so that the poor people have not become awared about the
banking product and services .

Those successIul banks, who Iocused on the rural and urban sector by providing
Iinancial inclusion services, now in the next step, they are planning to open
saving and current account which was not suIIicient Ior Iinancial inclusion.
Financial inclusion may be successIul iI the priorities will be given upon the
daily transaction oI accounts (saving and current) and loans Iacilities , insurance,
education loan etc. Finally it provides appropriate Iinancial services and
increases the economic opportunities Ior the poor and low income people, Which
will lead towards positive results in social progress and economic development
oI our country.

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