Role Of Financial Inclusion In India

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TITLE: FINACIAL INCLUSION AND SELF EMPLOYMENT GENERATION IN ARUNACHAL PRADESH INTRODUCTION: Financial inclusion has become a crucial economic growth and development goal for all the nations. Financial inclusion is the process of ensuring access to appropriate financial product and services needed by all sections in the society in general and vulnerable group such as weaker sections and low income group people in particular at an affordable price in a fair and transparent manner by the main stream institutional players. India on its part has had relative success in this aspect and is on way in setting an example in implementing effective financial inclusion. The government and the banking sectors have driven a full…show more content…
Sayantani Banerjee &Greeshma Francis(2014) in their paper ‘ Financial Inclusion and Social Development’ have examined the role of Financial institutions as the catalyst of the economic and social growth in India. They analyzed the role of stakeholder in the society that will lead to the progress of the society and thus the important of financial inclusion was taken into picture. Providing access to finance is a form of empowerment of the vulnerable groups. This article also emphasizes on the access to basic banking services provides congenial conditions for growth of individuals, households and private Institutions. Also, social factors like unemployment and illiteracy are closely connected to the success of financial inclusion. Thus a sustainable social development can be simultaneously achieved alongside financial…show more content…
and its Determinant: Evidence from State Level Empirical Analysis in India’, Nitin Kumar has analyzed the study that utilizes state-wise panel data spanning over a period from 1995 to 2008 in an attempt to assess the behaviour and determinants of financial inclusion in India. In line with the economic intuition, he has also studied the increase in bank branch network (captured by average population per branch) which is having a beneficial impact on deposit and credit penetration. Although, the strength of causality weakens in case of credit penetration. The income level has a positive impact on both credit and deposit penetrations. The finding validates the importance of regional economic conditions on the betterment of financial inclusion. Further, the factory proportion and employee base are coming out to be significant variables indicating that income and employment generating schemes lead the public to be more active, aware, interested with regard to banking activities, which contributes towards financial

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