Financial Inclusion as A Business Opportunity For Banks And Mfis

Abstract

Financial inclusion, implying expanding access to financial services to those currently not accessing them, is an important objective in many developing countries. Financial inclusion plays a major role in driving a way the poverty from the country. Financial inclusion refers to delivery banking services to masses including privileged and disadvantaged people at an affordable terms and conditions. The three major aspects of financial inclusion are (i) access financial market (ii) access credit market (iii) learn financial matters. Reserve bank of India and government play and important role in promoting financial inclusion for economic growth. Access to finance by the poor, disadvantaged and underprivileged group is a prerequisite of poverty alleviation on one hand and the economic growth on the other. In the struggle against poverty, the financial inclusion is a crucial element. RBI has also adopted two strategies to generate great awareness and expand the reach of banking services which can be termed as empowerment and protection. This paper addresses all concerned issues involved in achieving the national objective of achieving the complete financial inclusion. This paper critically evaluates the initiatives taken by the Banks in financial inclusion and MFIs, efforts made for IT enabled financial services, on the basis of the objective data derived from the RBI’S reports and other empirical studies.