The Importance Of Financial Inclusion

1015 Words5 Pages
The visions encompass universal access at reasonable rates to bank accounts, payment services, deposit and investment products, and insurance and risk management products, along with wide access to credit and a right to suitability (that is, that services meet the needs of a range of clients). The RBI has defined financial inclusion as “the process of ensuring access to appropriate financial products and services needed by all sections of the society in general and vulnerable groups such as weaker sections and low income groups in particular at an affordable cost in a fair and transparent manner by mainstream institutional players” (Joshi 2014). Financial inclusion also includes the broadening of financial services to those people who do not have access, the deepening of financial services for people who have minimal access, and greater financial literacy and consumer protection so that those who are offered the products can make appropriate choices (Rajan 2014). Progress from 1947 to 2004…show more content…
The survey indicated that farmers borrowed Rs7.5 billion in 1951–1952, with private moneylenders accounting for 70% of that total, and commercial banks providing less than 1% (Pradhan 2013). The distribution of bank branches was highly concentrated in urban areas, a trend that continued until the 2000s when the RBI adopted a financial inclusion growth model. The urban concentration of bank branches corresponded with a larger portion of bank credit going to urban areas while the share of private business credit grew from 44% in 1957–1961 to over 60% in 1970 (Pradhan 2013).The government and RBI have adopted some innovative strategies and measures over the years to increase inclusion. These

More about The Importance Of Financial Inclusion

Open Document