Importance Of Financial Inclusion

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Financial Inclusion may be defined as the process of ensuring access to financial services and timely and adequate credit were needed by vulnerable groups such as weaker sections and low income groups at an affordable cost (Rangarajan Committee, 2008).
The financial access database by CGAP and World Bank group highlights that; access to basic financial services can create substantial positive difference in improving poor people’s lives. The research findings indicate that in developing world, sixty four percent of adults do not have access to formal financial services (Ardic & Heimann, 2011)
The issue of financial inclusion is a development policy priority in several developing countries. Among socio economic factor, as expected, income is
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Also, India encounters difficulties in opening bank accounts and in growth of mobile banking, but closer to global average in borrowing from formal institutions. Hence, the need for opening of more bricks and mortars branches was felt. (Sharma & Kukreja, 2013)
The financial inclusion has picked up in India in the last decade, but it is far from adequate, considering the vastness of the country. Banks and financial institutions need to focus towards inclusive growth, as the development of the economy depends on the extent of financial inclusion in India. (Memdani & Rajyalakshmi, 2013)
The percentage of financial inclusion in different states of the country varies differentially. For instances Kerala, Maharashtra and Karnataka accounts for high rate of financial inclusion but the states such as Gujarat, Manipur, Assam, Bihar, Uttar Pradesh, Madhya Pradesh, etc stand poorly on the grounds of financial inclusion. Hence, the growth has not only been uneven but also discrete (Dixit & Ghosh,
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The prevailing financial exclusion in India is a reflection of social barring in the society, which restricts the inclusive growth. Indian Public Sector Banks, since they play a major role in assisting government for improving country economy and rural development, need to work hard to leverage the strengths of financial inclusion and reach the unbanked and rural areas. They need to find ways to use technology to their benefit, by improving the services and reducing the cost of the services. Literacy alone, though being a large factor, cannot overnight improve the socio economic status of an individual. Awareness of the services, implementing them and taking their maximum benefit plays an extremely critical role in the economy development. In such a vast country with a great deal of diversity, implementing financial inclusion can resolve a great deal of issues that restrict the inclusive growth in the country thereby improving the socio economic status of an individual in the

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