STUDY ON FINANCIAL INCLUSION STATUS IN INDIA

Abstract

Financial inclusion refers to the delivery of financial services at affordable costs to all sections, including disadvantaged and low-income groups. The Government of India and Reserve Bank of India (RBI) have been taking various initiatives to promote financial inclusion which include increasing presence of commercial bank branches and through Business Correspondents/Bank Mitra network to bring the majority of the population to the formal financial services set-up, who are otherwise excluded and obtain credit from money-lenders for higher rate of interests, further getting trapped in the clutches of debt. The epoch-making financial inclusion scheme namely Pradhan Mantri Jan DhanYojana (PMJDY) has been launched by the Government of India on 15th August 2014, which is a pan-India mission for promoting Financial Inclusion by ensuring access to financial services, such as Savings in banks and Deposit Accounts, Insurance, Credit, Remittance and Pension in an affordable manner. Aim of this study is to analyse some of the access to financial inclusion indicators such as number of banking outlets per 1,00,000 adults, number of ATMs per 1,00,000 adults across the country. Status of PMJDY Accounts is also analysed across the country. Correlation study is also conducted to know the correlation between Financial Inclusions Indicators and Economic Indicators. Moreover, a survey was conducted among Bank Officials across the country to analyse the financial inclusion status in the country and measures to improve it. The analysis of the study presented the status of financial inclusion in the country and suggests “Recommendations to improve the financial inclusion status in India” to the policy-makers to achieve a higher rate of financial inclusion in the country thereby aiding in inclusive economic development.