The Importance Of Financial Inclusion

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Recommended: Financial inclusion concepts and the theoretical underpinnings

Abstract For an economy to reach its heights, needs to strengthen its financial system. Financial inclusion & financial literacy are the two important aspect of financial system which enables an economy to achieve inclusive growth. Financial inclusion is the delivery of financial services at the affordable cost to vast sections of vulnerable group i.e. disadvantaged & low income group. Financial inclusion plays a major role in driving away the poverty. The earliest effort at financial inclusion in India dates back to 1904. The term 'financial inclusion' was first mooted by K C Chakraborthy in 2005, from then on; the Government of India has launched various initiatives as a path to achieve 'inclusive growth'. In 2015, GOI announced 'Pradhan …show more content…

It investigates the various schemes under financial inclusion plan. The study will pave way to identify the achievements of PMJDY scheme & its contribution towards inclusive growth. Limitation of the study: Researchers have taken every possible concern to ascertain accuracy in the presentation of the facts of PMJDY & its achievements. But the paper may tentatively suffer from few shortcomings as the study is based on secondary data. Hence the accuracy is depending on the secondary sources of data. Financial Inclusion: RBI defines financial inclusion as, 'the process of ensuring access to financial services & products needed by vulnerable groups at an affordable cost in a fair & transparent manner by institutional players. Financial Inclusion refers to universal access to a wide range of financial services at a reasonable cost. These include not only banking products but also other financial services such as insurance and equity products. Financial inclusion broadens the resource base of the financial system by developing culture of savings among large segment of rural population and plays its own role in the process of economic development. Further, by bringing low income groups within the perimeter of formal banking sector; financial inclusion protects their financial wealth and other resources in exigent circumstances. Financial inclusion also mitigates the exploitation of vulnerable sections by the usurious money lenders by facilitating easy access to formal

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