Financial inclusion is a constant pursuit of making financial services accessible at affordable costs to all individuals and businesses.
The benefits of financial inclusion and inclusive growth are clearly established. Access to financial services opens doors for families, allowing them to smoothen out consumption and invest in their futures through education and health.
Access to credit enables businesses to expand, creating jobs and reducing inequality. A vast segment of India’s population exists on the margins of India’s financial systems. There is growing concern about people being ‘under-banked’. Financial inclusion is important priority of the country in terms of economic growth and development of society. It enables to reduce the gap between rich and poor. It helps to channelize money-flow to the economy;
Financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs – transactions, payments, savings, credit and insurance – delivered in a responsible and sustainable way.
Being able to have access to a transaction account is a first step towards broader financial inclusion since a transaction account allows people to store money, and send and receive payments. Financial access facilitates day-to-day living, and helps families and businesses plan for everything from long-term goals to unexpected emergencies. As accountholders, people are more likely to use other financial services, such as credit and insurance, to start and expand businesses, invest in education or health, manage risk, and weather financial shocks, which can improve the overall quality of their lives.
Assistant Professor, Indira School of Business Studies