Financial Inclusion - the Scope and Effect in Indian Economy

FINANCIAL INCLUSION IN INDIA- IMPACT CHALLENGES Financial inclusion in India – The way forward ABSTRACT: The government of India RBI has out with a major initiative towards ensuring the inclusive growth through financial inclusion so that the access of financial service will reach to the mass population. The main theme of this paper is to highlight the requirement of financial inclusion and to estimate the social benefit from these initiatives. As Reserve Bank of India data shows that as many as 139 districts suffer from massive financial exclusion, with the adult population per branch in these districts being above 20,000 and only 3 percent with borrowings from banks. On the assumption that each adult has only one bank account†¦show more content†¦High cost of credit and exploitative terms:( credit against collateral such as gold is even more expensive than the effective interest rates, similarly, rates paid by hawkers and vendors who repay on daily basis are very high. High cost and leakages in money transfers: the delays( in sending money home through all informal channels add to these. Near( absence of insurance and pension services : life, asset, and health insurance needs Scope of financial Inclusion can put into effort Recent developments in technology have transformed banking from the traditional brick-and-mortar infrastructure to a system supplemented by other channels like automated teller machines (ATM), credit/debit cards, internet banking, online money transfers, etc. The Reserve Bank of India (RBI) has enabled branchless banking by facilitating the business correspondent/facilitator model, enabling non-government organizations, micro-finance bodies, co-operative societies, grocery shops, PCOs and individuals to collect small deposits, disburse and recover certain loans, and also sell other financial products, like insurance, pension and mutual funds, and to handle small remittances and payments. But is it also true that while a large number of no-frills accounts have been opened; those that are operational have yet to reach a meaningful level? On its part, the government has also unveiled a number of initiatives toShow MoreRelatedThe Growth And Poverty Improvement Of A Country Essay1539 Words   |  7 Pages INTERNSHIP INTRODUCTION Finance is assumed to be one of the most important tools for the growth and poverty improvement in a country. Financial inclusion is a vision for every country to achieve so that it can provide quality services to its citizens. Govt. Has introduces many schemes to achieve the aim of Inclusive growth and abandoned access to Financial services. Many initiatives, schemes and reforms have been put into the place after independence. Many Cooperative Banks where introduced toRead MoreFinancial Inclusion Of The Jammu And Kashmir State Essay812 Words   |  4 PagesFinancial inclusion, principally when endorsed in the wider framework of economic inclusion, it has an ability to uplift financial conditions and improve the standards of lives of the poor and the underprivileged. Financial inclusion has been successful in other countries India is also trying this for all time to achieve this goal. Access to affordable financial services would lead to increasing economic actions and employment o pportunities for rural households with a possible multiplier effect onRead MoreEssay On Banking Industry965 Words   |  4 PagesPresently, the key issues related to the Indian banking sector include: o prospective migration to Basel III while upgrading the existing risk management practices under Basel II; o transition to International Financial Reporting Standards (IFRS) and required upgradation in information technology and human resource infrastructure; o improvement in corporate governance practices in banks; and o the overall need to become more competitive on the back of scale, scope, prudence and knowledge to be able toRead MoreAgricultural Machinery Market : A Case Study Essay1590 Words   |  7 PagesDepartment of mechanical Assistant Professor and Industrial Engineering Department of mechanical and Industrial Indian Institute of Engineering Technology Roorkee Indian institute Of Technology Roorkee Table of Contents I. Introduction Problem Highlights Topic Justification scope and limitations II Policy III Tractor sales IV Growth in different segment IV Indian agricultural machinery in the world V Farming land per farmer VI conclusion IntroductionRead MoreA Study on Impact of Fdi on Service Sector4081 Words   |  17 Pagesstudies Garden City College Bangalore| | ABSTRACT The last two decades have witnessed an unprecedented growth of the Indian service sector. FDI is a tool for economic growth through its strengthening of domestic capital, productivity and employment. FDI plays a vital role in the up gradation of technology, skills and managerial capabilities in various sectors of the economy. The study aims to analyze the growth dynamics of the FDI. It intends to see whether the growth in FDI has any significantRead MoreImpact of Future Derivatives on Stock Market Volatility1588 Words   |  7 Pages Impact of Future Derivatives on Stock Market Volatility Derivatives has been the talk of the financial world after it was accussed as the primary reason for such a deep financial crisis that affecetd the global economy in 2007. Thus, the modelling of asset returns and judging the volatility of stock market and whether the derivatives have a substantial effect on stock market volatility, is still the key task for every finance professional as it provides much needed on risk patterns involvedRead MorePre Colonial India Is Characterized By Independent Self Sufficient Villages With Various Customs And Laws Essay1682 Words   |  7 Pagesinstitutions were challenged. The introduction of English ideals and political ideology placed strain on the relationship between foreign rulers and the indigenous people. Law changes regarding the taxation of imports and exports exploited India’s economy (Bally 38). The economic and moral developments these changes created purposed the benefit of colonial authority. The reforms stem from colonial valu es and did not reflect an accurate understanding of the history and culture of pre-colonial IndiaRead MoreGood Csr - Bad Csr in Telecommunications Industry4557 Words   |  19 Pages............ 3 CSR issues specific to the telecommunications industry .................................................................................. 4 Direct effects..................................................................................................................................................... 4 Indirect effects .................................................................................................................................................. 4 3. 4. INDUSTRYRead MoreA Research Study On Micro Finance2048 Words   |  9 PagesMicro-finance is a service provided by banks and other financial institutions in which extremely affordable and easy loans are provided to the low-income segment of the country and those people having no source of financing. It is mostly practiced in under-developed and developing countries. Micro-finance ensures that these people have a secure income source for their future. Furthermore Micro-finance serves a dual purpose of: 1. Raising the Employment level 2. Increasing the per-capita income OneRead MoreRole of Bc/Bf in Financial Inclusion16135 Words   |  65 PagesROLE OF BUSINESS CORRESPONDENT / BUSINESS FASCILITATOR IN FINANCIAL INCLUSION. A PROJECT REPORT Submitted by VARUN VERMA (2K92A49) PGDM GENERAL In partial fulfillment for the award of the degree Of MASTERS IN BUSINESS ADMINISTRATION [pic] ASIA PACIFIC INSTITUTE OF MANAGEMENT, NEW DELHI (2009-2011) ACKNOLEDGEMENT I wish to express my gratitude to NABARD, Haryana, for giving me an opportunity to be a part of it and enhance my knowledge by granting permission to do my summer project