Financial Inclusion & Indian Banking Sector

Abstract

For developing nations the era is of inclusive growth and the key for inclusive growth is financial inclusion. Finance being life blood of any business is an important component during commencement, continuity and closure of any business organization and to provide right type of finance and right time, the role of banks can never be overlooked. The banking scenario in India has travelled by through different phases for its growth, development and sustainable existence. Financial inclusion which is a result of banks consistence efforts to involve all stakeholders from grass root level with a mission and vision of social growth ,involvement and of course expansion in overall banking activities. Financial inclusion or inclusive financing is the delivery of financial services, at affordable costs, to sections of disadvantaged and low income segments of society. There have been many number of  challenges in financial inclusion areas to sought out various issues coming up from time to time in changing economic scenario such as bringing the gap between the sections of society that are financially excluded within the ambit of the formal financial system, providing financial literacy and strengthening credit delivery mechanisms so as to improve the financial economic growth. A nation can grow economically and socially if the financially dependent  section can turn out to be financial independent. This paper is an attempt to overview the concept of financial inclusion, and its need for social and economic development of the society. The study also attempts to analyze contribution of Indian Banking sector as a whole under the supervision and guidelines of RBI in implementing the financial inclusion through ‘No frill accounts' etc. This paper attempt to analyze the role of financial inclusion in Emerging economies(BRICS) &  financial inclusion can bring about social inclusion which is the contribution to rural and urban India through the efforts of banking sector by ‘banking the unbank' sectors.