A STUDY AND ANALYSIS OF FINANCIAL INCLUSION IN INDIA

ABSTRACT

Financial inclusion is an important process to attain the goal of inclusive growth. Accordingly, the Reserve Bank of India has made sustained efforts to increase the penetration of formal financial services in unbanked areas, while continuing with its policy of ensuring adequate but viable flow of credit to priority sectors of the economy. Financial inclusion is delivery of banking services at an affordable cost to the vast sections of underprivileged and low income groups. By financial inclusion we mean the provision of affordable financial services to those who tend to be excluded. Significance of financial inclusion arises from the problem of financial exclusion of nearly 3billion people from the financial services across the world, with only 34percent population engaged in formal banking. The present paper is a humble attempt to find out the causes of financial exclusion in India, analyze the extent and magnitude of financial inclusion in the context of India and suggest measures to solve the problem of financial exclusion in India.

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