The Dimensions of Financial Inclusion of Under-Privileged Sections of the Society in India - A Review

Financial inclusion (FI) has received renewed attention of researchers and policy makers in all countries. FI refers to households accessing institutional credit including commercial banks, cooperative banks, self-help groups, and credible microfinance institutions. Many financially underprivileged people of the society are exploited by moneylenders at very high interest rates because they do not use the banking system. It is therefore necessary to design appropriate policy for FI. This review paper is part of a project sponsored by the ICSSR-IMPRESS. This project creates a model in which the opinion leaders and influencers such as panchayat ward members, panchayat presidents, and PDS workers of the underprivileged sections of the society are roped in to be educated on the benefits of using the mainstream financial instruments, thereby, making banks as their primary and major source of savings and financial transactions. This will enable them to escape from loan sharks, moneylenders, pawn brokers and lead an enriched life and help in the growth of our economy and nation.