Hyderabad-Karnataka Region

Introduction

In 20th century inequality has often been explored through the social exclusion (Byrne, 1999). Social exclusion was often ignored from the mainstream of economy (Hills, et al., 2002). The financial exclusion causes social exclusion and poverty. Achieving 100 per cent financial inclusion is difficult task and it not only just opening bank account and solve financial problem of marginalized sections and disadvantaged people, its important objective is abolishing the state of social exclusion in the economy (Rangarajan, 2008). Countries large number of people excluded from formal financial systems it indicate the higher poverty ratio and higher inequality (World Bank, 2006, 2008). Barclays (2010) opined that people who excluded from bank account and payment system it is harder and more expensive them to survive in life, bank account helps to save securely or build financial strength to get loan from banks.

Financial inclusion become popular solutions for alleviate poverty, in the similar that microfinance fifteen year ago. But microfinance not fully achieved early promise; it did not lift the poor out of poverty (Cooney and shanks, 2010). As long as assumption that financial exclusion causes poverty, several theories recommending every person should be included into formal financial system at a minimum having bank account either no-frill account (Conroy, 2008). Access to banking services enables vulnerable people for economic activity but most of them in society not enable to access financial services viz., savings account, credit and insurance. The main issue is how to extend financial services to those people excluded from financial system (Barclays, 2010). All over the world policy makers, governments have begun to pa...

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