Title: Financial Exclusion: Need for Financial Inclusion
Abstract: India has the second largest number of financially excluded people in the world. Both the Government and the Reserve Bank have taken initiatives continuously to address the issue of inclusive growth. The entire argument on financial inclusion is whether the financially excluded community can be accommodated in the mainstream banking sector or not. Till the last decade, the commercial banks manifested their unwillingness to incorporate the marginalized in the mainstream banking community. This was chiefly because the functional costs were high and the profit of margin was low. Even today, 100 million house-holds have informal savings which are outside the fold of the formal financial system. Tapping the informal savings of the poor and using these resources for development is necessary. In this backdrop, an attempt is being made in this paper to discuss the specific measures needed to be looked into by each stakeholder for the success of the financial inclusion.
Publication Year: 2014
Publication Date: 2014-01-01
Language: en
Type: article
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