Financial Inclusion - The concept
Financial Inclusion – The concept:
Financial Inclusion nowadays have become more than rhetoric’s. Recent Reserve Bank of India (RBI) circular (RBI/2005-06/288) furthered the scope of financial Inclusion initiatives in India.
Financial inclusion means providing access to affordable financial services such as savings, loan, remittance and Insurance for the rural poor who has no or limited access to it. Why is this financial Inclusion more important than any other initiatives at the grassroots level? It enlarges livelihood opportunities and empowers the poor to take charge of their lives.
Ms.Usha Thorat , Deputy Governor, RBI in one of hour speeches claims that Financial Inclusion imparts formal identity, provides poor access to the payments system. It has been declared that Financial Inclusion is considered to be critical for achieving Inclusive growth by the policy makers of India.
Lack of access to financial services prevents poor and low income people from making everyday decisions. Access to financial services does not mean that it solves all the problems of the poor nor it drives away the poverty. But it brings in front of them a range of resources and power in their hands which if used wisely can chalk them out of poverty.
Financial Inclusion can be looked at in two ways,
□ To extend banking facilities in untapped/Non banked areas
□To extend Innovative and affordable Micro finance services for those who lack access to financial services
Financial Inclusion nowadays have become more than rhetoric’s. Recent Reserve Bank of India (RBI) circular (RBI/2005-06/288) furthered the scope of financial Inclusion initiatives in India.
Financial inclusion means providing access to affordable financial services such as savings, loan, remittance and Insurance for the rural poor who has no or limited access to it. Why is this financial Inclusion more important than any other initiatives at the grassroots level? It enlarges livelihood opportunities and empowers the poor to take charge of their lives.
Ms.Usha Thorat , Deputy Governor, RBI in one of hour speeches claims that Financial Inclusion imparts formal identity, provides poor access to the payments system. It has been declared that Financial Inclusion is considered to be critical for achieving Inclusive growth by the policy makers of India.
Lack of access to financial services prevents poor and low income people from making everyday decisions. Access to financial services does not mean that it solves all the problems of the poor nor it drives away the poverty. But it brings in front of them a range of resources and power in their hands which if used wisely can chalk them out of poverty.
Financial Inclusion can be looked at in two ways,
□ To extend banking facilities in untapped/Non banked areas
□To extend Innovative and affordable Micro finance services for those who lack access to financial services
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