A STUDY ON FINANCIAL INCLUSION & ITS IMPACT ON ECONOMIC EVELOPMENT
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Abstract
“Financial inclusion is about the broadening of financial services to those people who do not have access to financial services sector, providing greater financial literacy and consumer protection so that those who are offered the products can make appropriate choices. The imperative for financial inclusion is both a moral one as well as one based on economic efficiency”.
In India financial inclusion is not new unusual requirement. Out of 248 crores of household
60% of the population in India is unbanked.
Ø 40% in urban areas
Ø 60% in rural areas
Objective of financial inclusion is to deliver the banking services at an affordable cost to vast sections of society.The world as also seen how the so called weak banks and financial institution of India came triumphant during recession of 2008. However in recent years Government of India & RBI have been making concerned efforts to promote Financial Inclusion as one of the important national objective for Economic Development. Some of the major efforts made in last few decades includes nationalization of banks, establishment of RRB’s and recently zero balance Basic Saving Bank Deposit account i.e, Jan Dhan Yojana.
Increasing commercialization of agriculture and rural activities is bound to result in to cycle of higher income, higher consumption, higher savings and higher investment resulting into higher income. Growth is changing the
face of rural as well as of urban India. Thus financial inclusion is cause as well as outcome of economic development.
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