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Financial Inclusion Presentation

This document discusses financial inclusion in India. It defines financial inclusion as ensuring access to financial services and credit for vulnerable groups at affordable costs. It notes that many Indian households lack access to basic amenities. Financial inclusion is essential for inclusive growth and development. The document outlines types of financial exclusion, benefits of greater inclusion, and measures taken by the Indian government to promote inclusion through expanded access to bank accounts, credit products, remittances, insurance, and other services. It provides updates on recent financial inclusion initiatives launched in Bihar and by CGAP.

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Nitish Sen
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157 views14 pages

Financial Inclusion Presentation

This document discusses financial inclusion in India. It defines financial inclusion as ensuring access to financial services and credit for vulnerable groups at affordable costs. It notes that many Indian households lack access to basic amenities. Financial inclusion is essential for inclusive growth and development. The document outlines types of financial exclusion, benefits of greater inclusion, and measures taken by the Indian government to promote inclusion through expanded access to bank accounts, credit products, remittances, insurance, and other services. It provides updates on recent financial inclusion initiatives launched in Bihar and by CGAP.

Uploaded by

Nitish Sen
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 14

FINANCIAL INCLUSION

PRESENTED BY- Nitish sen


DEFINATION

• The process of ensuring access to


financial services and timely and
adequate credit where needed by
vulnerable groups such as weaker
sections and low income groups at an
affordable cost

2
WHY FI TARGETTING THE WEAKER
SETIONS
• 37.7% of Indian households do not have
access to a nearby water source
• 49% do not have a proper shelter
• 69.5% do not have access to suitable toilets
• 85.2% of Indian villages do not have a
secondary school and
• 43% of Indian villages do not have an all-
weather road connecting them

3
FI essential

For inclusive growth which is necessary


for sustainable overall economic growth
– In developed economies, focus is on
small population
– In developing economies (India), focus is
on majority excluded

4
Types of Financial Exclusion

(i) exclusion from payment system : not


having access to bank accounts
(ii) exclusion from formal credit markets
leading to approaching informal/
exploitative markets

5
Benefits of Greater FI

• For the common man–escape from the clutches of


money lenders; sending / receiving remittances; no
need to hold savings in cash etc.

• For the banks–achieving access to a large


untapped pool of customers.

• For the Govt.-ensuring flow of aid / grants to the


targeted beneficiary.

• For the RBI -spread of banking culture and


extension of the reach of formal financial system.
6
Financial Inclusion - Scope

• Financial Inclusion should include access to


financial products and services like,
– Bank accounts – check in account
– Immediate Credit
– Savings products
– Remittances & Payment services
– Insurance - Healthcare
– Mortgage
– Financial advisory services
– Entrepreneurial credit

7
Financial Inclusion : The Indian Perspective
Empowerment
Bank A/Cs - Credit Cards of SHGs
Savings

Payments +
Remittances Financial Inclusion Insurance

Lack of
Financial Affordable Credit Assets (for
Advice
Collateral)

12/08/21 JKSHIM, Nitte, India 8


Measures for promoting financial inclusion

• Products
– No frill account
– KYC norms simplified
– Introduction of GCC
– OTS for overdue loans upto
Rs.25,000/-
– KCC

9
What Have We Achieved

• Number of No-Frill Accounts – 28.23 million (as on


Dec. 31, 2009)
• Number of rural bank branches – 31,727 constituting
39.7% of total bank branches (as on June. 31, 2009)
• Number of ATMs – 44,857 (as on May 31, 2009)
• Number of POS – 4,70,237 (as on May 31, 2009)
• Number of Cards – 167.09 million (as on May 31, 2009)
• Number of Kisan Credit cards – 76 million
• Number of Mobile phones–403 million (as on Apr.30,
2009)
– out of which 187 million (46%) do not have a
bank account

10
Problems / Difficulties

• Scaling up of activities
• Transaction cost too high
• Appropriate business model yet to
evolve
• BC model too restrictive
• Limitation of cash delivery points
• Lack of Interest / Involvement of Big
Technology Players
11
CURRENT NEWS
• Financial inclusion scheme rolled out in
bihar on Aug 28,2010
Glodyne Technoserve, a technology services
company in partnership with the Government of
Bihar has rolled out rural Financial Inclusion
services in the state providing banking facility to
the 25 million ‘E-shakti’ MNREGS (National
Rural Employment Guarantee Scheme) project.
The scheme was rolled out by Chief Minister of
Bihar, Mr. Nitish Kumar on Friday in Patna.

12
Contd…

• Financial inclusion regulation center launched


by CGAP on Aug 21,2010
Plugging the information gap on financial
inclusion laws and regulations, the
Consultative Group to Assist the Poor (CGAP)
has launched a Financial Inclusion Regulation
Center, which provides a broad, timely
collection of the laws and regulations most
relevant to key financial inclusion topics

13
Thank You

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