Extent of Financial Inclusion in India

Abstract

Financial inclusion aims at providing financial services at affordable costs to the section of disadvantaged and low income of the society especially the people who are deprived of banking facilities due to non-availability of such facilities in their areas or may be the services are available but they are not taking advantage of such provisions merely due to their illiteracy especially in financial matters. Thus the availability of banking and credit facilities to all sections of society in particular the deprived classes is the major important objective of Financial Inclusion. Financial Inclusion has been embedded as an objective of economic policy in our country and the Government of India and the Reserve Bank of India have been making concerted efforts to ensure universal financial access. This paper highlights some of the initiatives taken by the government and Reserve Bank of India to achieve the target of Comprehensive Financial Inclusion. It also attempts to study the progress of financial inclusion in our country and also critically analysis the facts. The paper also draws attention to some of the challenges in the path of financial inclusion and suggest some measures to tackle such hurdles and achieve comprehensive financial inclusion.