• “MONEY IS PIVOT

AROUND WHICH THE

WORLD EVOVLES”
 INTRODUCTION
• Meaning: Financial
Inclusion is
the delivery of banking
services at affordable costs to
vast sections of disadvantaged
and low income groups
including Households,
Enterprises, SMEs, Traders.
FINANCIAL SERVICES INCLUDE
• Savings
• Immediate Credit
• Insurance
• Remittance Facilities
• Mortagge
• Financial Advisory Service
• Entrepreneurial Credit
WHY FINANCIAL INCLUSION
• The non-institutional money-lender or ‘
informal’ financial sector seeks an exploitative
economic relationship so that:
• Borrower is squeezed for repayment with high
interest rates (due to risk perception).
• If income situation worsens, cash supply is
tightened and interest rates are raised.
• Further loans ensure that borrower can never
repay principal.
• Borrower then loses collateral, readying him
for another loan.
 SOME MISCONCEPTIONS
• Financial Inclusion (FI) is a latest ‘fad’.
• FI is only Social Service ; not a good
business proposition.
• FI simply means opening as many Bank
Accounts As possible.
• Everyone Handles money. Therefore,
everyone is financially literate.
 FINANCIALLY EXCLUDED
• Marginal farmers
• Landless labourers
• Self employed and unorganized sector enterprises
• Urban slum dwellers
• Migrants
• senior citizens
• Women
• The North East, Eastern and Central regions
contain most of the financially excluded population.
 INDIAN SCENERIO
• Around 50% of the Indian population suffers from chronic
poverty and hunger. 
• Only 31% of the Indian population has access to
Banking services.
• The rest 69% are still deprived of bare minimum banking
services for which they are totally dependent on informal
banking sources like private money lenders.
• While the need to solve this mammoth problem is great,
we are unable to reach large numbers of the poor with
products, services and information they need to achieve
financial security.
AIM OF FINANCIAL INCLUSION
• Our national vision for 2020 is to open nearly
600 million new customers' accounts and
service them through a variety of channels by
leveraging on IT.
• However, illiteracy and the low income savings
and lack of bank branches in rural areas
continue to be a road block to financial inclusion
in many states.
• To achieve this objective commercial banks
have started a drive to open branches in hitherto
unbanked areas.
 STEPS
• It can be said that Bank nationalization was first step
towards Financial Inclusion in India.

• RRBs were created to take banking services to rural

people.

• Public Sector banks are making use of the services of

non-governmental organizations (NGOs/SHGs), micro-
finance institutions and other civil society organizations
as intermediaries for providing financial and banking
services. These intermediaries are being used as
business facilitators (BF) or business correspondents
(BC) by commercial banks.
 SHG’s
• Registered or unregistered group of people.
• They pool their Savings.
• SHG-Bank linkage program
• Saving Bank account with Banking Sector was
• 6.1 million with outstanding savings of Rs 5446
crores.
• Outstanding Loans of Rs 22,680 Crores.
 MICRO CREDIT INSTITUTIONs

• Micro Credit: provison of credit and financial

service and products of very small amount.

• For poor people of rural, semi-urban and urban

areas .

• Also includes credit needs such as housing and

shelter improvements.
 BENEFITS OF GREATER F.I.
• For the Common Man: escape from the
clutches of money lenders; sending /
receiving remittances; no need to hold
savings in cash etc.
• For the Banks: achieving access to a
large untapped pool of customers.
• For the Govt: ensuring flow of aid / grants
to the targeted beneficiary.
R.B.I’s CONTRIBUTION TO F.I.

•No-Frill Accounts.
•Overdraft in Saving Bank Accounts.
•Liberalized branch expansion.
•Liberalized policy for ATM.
•Introducing technology-oriented products and
services
•Pre-Paid cards, Mobile Banking etc.
•Allowing RRBs / Co-operative banks to sell
Insurance and Financial Products.
•Financial Literacy Program.
FINANCIAL EXCLUSION means lost or neglected
business opportunities as it limits growth and
effectiveness.
• Excluding the people at the bottom of the pyramid has
economic consequences.
• In Indian context financial exclusion means stifling of
growth of agricultural sector and the small/unorganized
sector cutting across the secondary and tertiary sectors
which together contribute to 40% of GDP and 80% of
the population.
• This is a barrier to achieving a high economic growth
rate with sustainability.
• India cannot afford to have financial exclusion.
 INNOVATIVE MEASURE’s
• Bank account with Aadhaar (UID Cards).
• Financial Education for literate and illiterates through
various program.
• Products according to needs and income pattern of
people.
• More participation of Private sector.
• Government role as Regulator.
Let us Give One Big
Push to Financial
Inclusion!
 I SINCERELY THANK
• Ms. ANUPAMA GUPTA MA’AM

• Ms. VEDASHRI BHIDE MA’AM

• SHIVANSH MISHRA