IJMH – Volume 5 Issue 2 Paper 2


Author’s Name : M Ramakrishna

Volume 05 Issue 02  Year 2018  ISSN No:  2349-7289  Page no: 6 – 9



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- by Dr. C. Rangarajan The benefits of Finance are not along significant for individuals but for economics as well. Financial inclusion is linked to a country’s economic and social development, and plays a role in reducing extreme poverty. In India, the Reserve Bank of India RBI has initiated several measures to achieve greater financial inclusion, such as facilitating no-frills accounts and “General Credit Cards” for low deposit and credit. Today there is no dearth of technology and its transformational role cannot be over-emphasized. Financial inclusion is a key determinant of sustainable and inclusive growth. It can unlock the vast hidden potential of savings, consumption and investment propensities of the poorer sections of our society. It provides credit to meet contingent expenses and undertake income-generating activities. Although India has made remarkable progress in terms of extension of banking services since nationalization of banks in 1969, the position regarding access to formal banking system is far inadequate in terms of scales of extension required. For the Indian growth story to become sustainable, encompassing financial inclusion is a must. It is also important that each of the stakeholders in the growth process understand the immense value of inclusive growth process understand the immense value of inclusive growth. For the private sector too there are immense opportunities to be reached at the “bottom” of the pyramid. There are several areas where private sector can play a role. The important areas include – design of physical products such as the various devices and instruments; innovation in design of software to run these devices in safe and secure manner; design of financial products and services that are relevant to the poor. Recent research indicates that financial inclusion is not only positively correlated with growth and employment, but it is generally believed to causally infact growth and development.


Financial Awareness, Entrepreneurial Credit, No-frills Accounts, Transformational, Business Correspondence, Economic Resilience


  1. Financial Inclusion growth and Governance by Dr. Deepali panth Joshie
  2. Financial Inclusion overview – World Bank Group
  3. A Fine Balance by Rohinton mistry
  4. Financial Inclusion and poverty Alleviation in India by Ajay Kumar Thomar, Nethu Saini and Shobha Jain
  5. Inclusive Finance India Report 2017 by M. S. Sri ram
  6. Financial Inclusion and Inclusive Growth by K. Gangadharan