.
Across the globe, financial sector reforms that promote financial inclusion are increasingly at the core of policymakers’ agendas. In India in order to foster financial inclusion the reserve bank of India made several initiatives, where the banking sector in India take the prominent role of providing a broad array of services to the underprivileged
Sections like marginal farmers, landless labours and the socially excluded groups.
Financial inclusion denotes delivery of financial services at an affordable cost to the vast sections of the disadvantaged and low-income groups. The various financial services include credit, savings, insurance and payments and remittance facilities.
Financial inclusion has become a buzzword internationally – even in developed financial
markets there are concerns about those excluded from the banking system. The barriers
to access to formal banking system have been identified as relating to culture, education
(especially financial literacy), gender, income and assets, proof of identity, remoteness of residence, and so on. Efforts are being made by the authorities- especially banking regulators to improve access to affordable financial services through financial education,
leveraging technology and generating awareness in order to create enabling conditions
such that markets become more open, more competitive, affordable and inclusive
Fully 2.5 billion of the world’s adults don’t use formal banks or semiformal microfinance institutions to save or borrow money, our research finds. Nearly 2.2 billion of these unserved adults live in Africa, Asia, Latin America, and the Middle East. Unserved, however, does not mean unservable. Financial development and improved access to credit tends not only to accelerate economic growth but to lower household poverty and inequality. For poor households, credit is not the only, or in many cases the priority, financial service they need: good savings and payments (domestic as well as international) services and insurance may rank higher
Across the globe, financial sector reforms that promote financial inclusion are increasingly at the core of policymakers’ agendas. In India in order to foster financial inclusion the reserve bank of India made several initiatives, where the banking sector in India take the prominent role of providing a broad array of services to the underprivileged
Sections like marginal farmers, landless labours and the socially excluded groups.
Financial inclusion denotes delivery of financial services at an affordable cost to the vast sections of the disadvantaged and low-income groups. The various financial services include credit, savings, insurance and payments and remittance facilities.
Financial inclusion has become a buzzword internationally – even in developed financial
markets there are concerns about those excluded from the banking system. The barriers
to access to formal banking system have been identified as relating to culture, education
(especially financial literacy), gender, income and assets, proof of identity, remoteness of residence, and so on. Efforts are being made by the authorities- especially banking regulators to improve access to affordable financial services through financial education,
leveraging technology and generating awareness in order to create enabling conditions
such that markets become more open, more competitive, affordable and inclusive
Fully 2.5 billion of the world’s adults don’t use formal banks or semiformal microfinance institutions to save or borrow money, our research finds. Nearly 2.2 billion of these unserved adults live in Africa, Asia, Latin America, and the Middle East. Unserved, however, does not mean unservable. Financial development and improved access to credit tends not only to accelerate economic growth but to lower household poverty and inequality. For poor households, credit is not the only, or in many cases the priority, financial service they need: good savings and payments (domestic as well as international) services and insurance may rank higher