Financial Inclusion

After 65 years of independence, large sections of the Indian population still remain unbanked. This has led generations of financial instability and lower income group who do not have access to financial products and services. However, in the recent years the government and the Reserve Bank of India has introduced the concept and idea of financial inclusion. Financial inclusion is an important method of economic development of a nation. Financial sector inclusion is a very important component of inclusive growth strategy. Financial inclusion can be described as the delivery of banking and other financial services at affordable costs to the vast sections of the disadvantaged and low income groups. It plays very vital role in economic progress. Financial sector inclusion helps in eliminating poverty, reducing inequality, eliminating unequal access to opportunities, reducing inequalities of choice. This study tries to understand policy initiatives by the government for financial inclusion, reasons for financial exclusion, steps taken by the government for financial inclusion and the implications of financial inclusion. This study is mainly based on secondary data and collected information from books, journals and website.