Title: FINANCIAL INCLUSION - A ROAD INDIA NEEDS TO TRAVEL
Abstract: Financial inclusion is emerging as new paradigm of economic growth. Financial inclusion refers to universal access to a wide range of financial services at a reasonable cost. It is, in fact, one of the essential conditions for reduction of poverty and socio-economic inequalities in the society. The idea of inclusive growth can be traced back to late 1960’s but it gained importance in the early 2000’s. Now, financial inclusion has become the main objective of banking sector. Financial inclusion is essential for the development of an economy. Financial inclusion encourages the saving habits. Besides nurturing the habit of saving among the masses, it will remove the apprehensions and fear from their mind towards the financial products and services. This will encourage un/under- banked consumers to enter into or make better use of the financial mainstream. It will also persuade people to take credit for setting up new ventures. In India, financial inclusion was first featured in 2005. The broad strategy in India in recent years comprised of encouraging penetration into un-banked and backward areas and using technology for furthering financial inclusion. This paper reviews the conceptual framework, requirements and beneficial aspects of financial inclusion. This paper further discusses the status of financial inclusion at Indian and Global Level. This paper also gives description of challenges of financial inclusion and recommendation to overcome these challenges.
Publication Year: 2013
Publication Date: 2013-01-01
Language: en
Type: article
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Cited By Count: 17
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