They argue that access to all essential financial services is considered to be financially included instead of jut few services. They further add on that the problem of financial exclusion is not only restricted to India, it’s a problem faced by the world. India has adopted multiple means from around the world for achieving financial inclusion. They are very well convinced by the fact that financial inclusion and economic development are interrelated. Inclusive growth poverty reduction efforts can be accelerated by creating economic opportunities and plan their routine expenses more efficiently and effectively.
The people, their skills – inherent and learnt, availability of raw material, climatic conditions give countries an advantage over others. This is another reason that necessitates Foreign Trade. Economic Development There is often diversity in the economic growth rate of different countries. While some countries are developed, some are underdeveloped and some others are developing. Underdeveloped and developing countries depend on for capital which further increases the need for Foreign Trade.
.2 Theoretical Review 2.2.1 Financial Inclusion Theory Financial inclusion refers to the process of ensuring access to appropriate financial products and services needed by all sections of the society in general and vulnerable groups such as weaker sections and low income groups in particular, at an affordable cost, in a fair and transparent manner, by mainstream institutional players. An inclusive financial sector is that which provides ‘access’ to credit for all ‘bankable’ people and firms, to insurance for all insurable people and firms, to savings and payment services for everyone, United Nations (2006). Inclusive finance does not require that everyone who is eligible use each of the services, but they should be able to choose them if
Access to financial products and services by the poor and vulnerable groups is a perquisite for poverty reduction and social cohesion. Providing access to finance is a method of empowerment of the vulnerable groups. The main goal of Millennium Development Goals is reduction of poverty in every level. Beginning with the nationalization of banks in 1969, efforts were made to reduce the gap between banks and people. Despite the spread of
Financial inclusion refers to a process that ensures the ease of accessibility, availability and the usage of the formal financial system for all members of an economy as defined by Sarma . Various advantages are offered by an inclusive financial system. It helps in efficiently allocating productive resources which helps potentially in reducing the capital cost. Moreover, access to appropriate financial services can significantly improve the day-to-day management of finances. An inclusive financial system can help in reducing the growth of informal sources of credit (such as money lenders.
Adequate reform and regulations, therefore, ensure efficient and stable financial system, which is vital for the successful implementation of the monetary and economic policies of a country. To achieve this objective it is essential to place financial reform measures that enhance the contribution of the banking system towards economic development. Previous research has revealed that financial liberalization heightens the growth of the financial sector, by narrowing down the margins of intermediation, arousing proficient distribution of savings, reducing tariffs, tax exemptions and subsidies for export, unification of foreign market, exchange rate adjustments and shifting products from restricted to liberal lists, which eventually leads to economic growth (Levacic, 1987; Knoke and Laumann, 1987). On the other hand a financial market where heavy regulations prevail is expected to exercise financial repression (Dornbusch,
Financial statements are a central figure of financial reporting. The IASB’s framework describes the basic concepts by which they are prepared. In accordance with IFRS, financial statements should present fairly the financial position, financial performance and cash flows of an entity. Fair representation means faithful representation of the effects of transactions, other events and conditions in accordance with the definitions and recognition criteria for assets, liabilities, income and expenses set out in the IASB’s framework. An entity conforming with IFRS must include an explicit and unreserved statement of compliance with all the requirements of IFRS in the
I INTRODUCTION It has been said by many economists that smooth flow of savings and investments is the key factor for a well-developed financial system ,supports economic growth (King and Levine, 1993) . A sound financial system can help in achieving efficiencies in socio-economic factors. To make a financial system well functioning one of the desirable characteristics is to control at the level of non-performing assets (NPA) .For the growth of any economy smooth flow of credit is essential and NPAs beyond a particular level are the cause for concern so far the smooth economic growth is concerned so it’s essential to control the level of NPAs. Banks are usually raising resources not just at fresh deposits, but also by the funds
When you are financially educated, you can do these things and more. 3. To have the capacity to add to the nation's economy Financial literacy contributes enormously to the nation's economy, particularly if a good majority of the population know how to manage their personal finances. For example, if individuals know how to save a little money in the banks, then it can positively affect their economy. Not exclusively will you profit by the marvels of financial
Sustenance and growth of public sector banking is very much essential for balanced and effective economic development. Increased competition has made this a challenging task. It is imperative that there is urgent need to strengthen the weak public sector banks. To strengthen the