The Definition Of Financial Inclusion In India

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Financial Inclusions
Strong financial institutions provide a platform for the smooth functioning of a country and also to maintain its economic growth. In order for a country to grow from strength to strength, it is truly essential that the banking sector envelopes all the population of the country, from the richest of the rich to the very poor. The participation of the economically backward is very vital for the prosperity of a country. We believe financial inclusion is a path, which India needs to tread towards to help her gain a stand in the global environment. The introduction of Legislation towards Financial Inclusion is one of the key measures towards this step. World over, countries have taken measures to include the financially weaker parts of the country in Banking.
Financial Inclusion is very important in India, as over 50% of the country has no association with any kind of bank. Only 55% of India has a deposit account and less than 9% have credit accounts. In terms of debit cards, the percentage is a paltry 18% and for credit cards , it is 2%.
The aim of Financial Inclusion is to broaden the scope of the financial system to include even those with very low income. This process ensures that the financial system is easily available, easily accessible and is usable by all members of an economy.
The Center for Financial Inclusion proposes a multi-dimensional definition of Financial Inclusion as ‘Full Financial Inclusion is a state in which all people who use them

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