Before they have done in order to

Before discussing the role of a
social concept in any form of society one must understand its meaning.Financial
inclusion is yet another concept that has become one of the burning topics on
Indian news channels and within the political and social communities.In a
country like India Financial Inclusion can be best defined as the delivery of
banking services to masses including privileged and disadvantaged people at affordable terms and conditions in a fair and
transparent manner.Now the question arises why it
has become the need of the hour, Financial
inclusion is an important priority of the
country in terms of economic growth and advancement
of society. An examples to illustrate this can be the growth in the number of ATM’s in India in the past few years
which have made financial transactions accessible to remote areas and rural
population.Now we will be discussing some of the important measures toward financial
inclusions taken by our country in the past, its
effects on Indian economy and challenges faced.

The key player in the process of
financial inclusion in any country are the banks as they are the basis of any
financial activity and are accessible by the most number of people, but in India, it is observed that the banks tend to
exclude rather than attract vast sections of the population.Since 2005 when the concept of financial inclusion was first
coined the Government has continuously urged this
institution to review their existing practice and align themselves with the
concept of financial inclusion.But the questions arises what the banks should
do and what they have done in order to achieve the goal.In many states like Puducherry
and Kerala norms were relaxed for people intending to open bank accounts.General
credit cards were issued to the poor and the disadvantaged with a view to helping
them access easy credit,  consequently,
every household in these areas had a bank account.In January 2006, the Reserve
Bank permitted commercial banks to make use of the services of NGO’s and other
civil society organizations as intermediaries for providing financial and
banking services.As a result of this, every household has a bank account in these
states and union territories.The RBI wishes to open nearly 600 million new
customers’ accounts by 2020 and service them through a variety of channels.But
these states were less populated and with high literacy rate. To attract the
masses on a national scale the government stepped in with the announcement of “Pradhan
Mantri Jan Dhan Yojna,” and “Pradhan Mantri Bima Yojana” both being national
financial inclusion missions which aimed at providing bank accounts and
insurance services to at least 75 million people by January 26, 2015.The
compulsion of Aadhaar in every financial transaction has further bolstered the
concept of financial inclusion and has greatly reduced corruption.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Financial
Inclusion enables to reduce the gap between rich and poor population for which the
inclusion of weaker sections in the mainstream economy is of paramount
importance.The Inclusion of people in the financial machinery provides them with
better incomes, smoothing consumption, rational utilization of savings, freedom
from the clutches of middlemen and moneylenders and above all a sense of elevation
and improved self-esteem.And it’s not like financial inclusion only aims at
helping poorer section of society but it improves the overall economy of the
nation which benefits everyone by increasing employment and income
opportunities.India still has less percent of its population(35 %) enrolled in
the financial system as compared to other developing economies like China(>55
%) and Brazil(41 %).Illiteracy, low-income savings and lack of bank branches in
rural areas continue to be a roadblock to financial inclusion in other states
and there is inadequate legal and financial structure which further worsens the
situation.100 % financial Inclusion in India is still a distant dream.

 

 

Before discussing the role of a
social concept in any form of society one must understand its meaning.Financial
inclusion is yet another concept that has become one of the burning topics on
Indian news channels and within the political and social communities.In a
country like India Financial Inclusion can be best defined as the delivery of
banking services to masses including privileged and disadvantaged people at affordable terms and conditions in a fair and
transparent manner.Now the question arises why it
has become the need of the hour, Financial
inclusion is an important priority of the
country in terms of economic growth and advancement
of society. An examples to illustrate this can be the growth in the number of ATM’s in India in the past few years
which have made financial transactions accessible to remote areas and rural
population.Now we will be discussing some of the important measures toward financial
inclusions taken by our country in the past, its
effects on Indian economy and challenges faced.

The key player in the process of
financial inclusion in any country are the banks as they are the basis of any
financial activity and are accessible by the most number of people, but in India, it is observed that the banks tend to
exclude rather than attract vast sections of the population.Since 2005 when the concept of financial inclusion was first
coined the Government has continuously urged this
institution to review their existing practice and align themselves with the
concept of financial inclusion.But the questions arises what the banks should
do and what they have done in order to achieve the goal.In many states like Puducherry
and Kerala norms were relaxed for people intending to open bank accounts.General
credit cards were issued to the poor and the disadvantaged with a view to helping
them access easy credit,  consequently,
every household in these areas had a bank account.In January 2006, the Reserve
Bank permitted commercial banks to make use of the services of NGO’s and other
civil society organizations as intermediaries for providing financial and
banking services.As a result of this, every household has a bank account in these
states and union territories.The RBI wishes to open nearly 600 million new
customers’ accounts by 2020 and service them through a variety of channels.But
these states were less populated and with high literacy rate. To attract the
masses on a national scale the government stepped in with the announcement of “Pradhan
Mantri Jan Dhan Yojna,” and “Pradhan Mantri Bima Yojana” both being national
financial inclusion missions which aimed at providing bank accounts and
insurance services to at least 75 million people by January 26, 2015.The
compulsion of Aadhaar in every financial transaction has further bolstered the
concept of financial inclusion and has greatly reduced corruption.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Financial
Inclusion enables to reduce the gap between rich and poor population for which the
inclusion of weaker sections in the mainstream economy is of paramount
importance.The Inclusion of people in the financial machinery provides them with
better incomes, smoothing consumption, rational utilization of savings, freedom
from the clutches of middlemen and moneylenders and above all a sense of elevation
and improved self-esteem.And it’s not like financial inclusion only aims at
helping poorer section of society but it improves the overall economy of the
nation which benefits everyone by increasing employment and income
opportunities.India still has less percent of its population(35 %) enrolled in
the financial system as compared to other developing economies like China(>55
%) and Brazil(41 %).Illiteracy, low-income savings and lack of bank branches in
rural areas continue to be a roadblock to financial inclusion in other states
and there is inadequate legal and financial structure which further worsens the
situation.100 % financial Inclusion in India is still a distant dream.

 

 

x

Hi!
I'm Mary!

Would you like to get a custom essay? How about receiving a customized one?

Check it out