Everything You Wanted to Know About financial inclusion
Financial inclusion may be defined as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost.
Financial Inclusion, broadly defined, 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.
Why Financial Inclusion ?
Financial inclusion broadens the resource base of the financial system by developing a culture of savings among large segment of rural population and plays its own role in the process of economic development.
Financial Inclusion – RBI Policy Initiatives
RBI has adopted a bank-led model for achieving financial inclusion and removed all regulatory bottle necks in achieving greater financial inclusion in the country. Further, for achieving the targeted goals, RBI has created conducive regulatory environment and provided institutional support for banks in accelerating their financial inclusion efforts.
The Lazy Way To best book The Alchemist: This book gives you a picture of how cruel or difficult life can be but one can only see success if he believes truly in himself. When the belief is so strong, you get help from everything in any form. You only get stronger when life throws a unsolvable problem at you and you face it with belief in yourself.
RBI initiatives for financial inclusion:
- Opening of basic saving bank deposit accounts;
- Relaxation in KYC norms for small deposit accounts;
- Allowing engaging business correspondents;
- Effective use of information and communications technology (ICT), to provide doorstep banking services
- Implementation of electronic benefit transfer (EBT) by leveraging ICT-based banking
- Issue of general credit cards
- Simplified branch authorization for tier III to tier VI centres (population of less than 50,000) under general permission
Financial Literacy Initiatives
Financial education, financial inclusion and financial stability are three elements of an integral strategy. While financial inclusion works from supply side of providing access to various financial services, financial education feeds the demand side by promoting awareness among the people regarding the needs and benefits of financial services offered by banks and other institutions.
It enables individuals to take effective action to improve overall wellbeing & avoid financial distress.
Benefits: it promotes financial inclusion and ultimately financial stability.
RBI initiatives :
- RBI has undertaken a project titled ‘Project Financial Literacy’ to disseminate information regarding banking concepts to various target groups, such as, school and college going children, women, rural and urban poor, defence personnel and senior citizens.
- RBI launched a financial education website on November 14, 2007.
- RBI circulated a comprehensive Financial Literacy Guide for conduct of Financial Literacy Camps & Financial Literacy Material as also a Financial Diary and a set of 16 posters.