financial incl final
TRANSCRIPT
-
7/29/2019 Financial Incl Final
1/15
-
7/29/2019 Financial Incl Final
2/15
Definition of Financial Inclusion
Financial Inclusion is theprocess of ensuringaccess to appropriate financial products and
services needed by all sections of the society in
general and vulnerable groups such as weakersections and low income groups in particular at an
affordable cost in a fair and transparent manner by
mainstream institutional players.
In advanced economies, Financial Inclusion is more about the
knowledge of fair and transparent financial products and a focus on
financial literacy.
In emerging economies, it is a question of both access to financial
products and knowledge about their fairness and transparency.
-
7/29/2019 Financial Incl Final
3/15
Financial Inclusion Steps Taken in the
Past
1. Co-operative Movement
2. Setting up of State Bank of India
3. Nationalization of banks
4. Lead Bank Scheme
5. Service Area Approach
6. Self Help Groups
--- Still We Failed!
-
7/29/2019 Financial Incl Final
4/15
Financial Exclusion
Why did We Fail?
Absence of Banking Technology
Absence of Reach and Coverage
Absence of Viable Delivery Mechanism
Not having a Business Model
Rich have no compassion for poor
-
7/29/2019 Financial Incl Final
5/15
Why Are We Talking of
Financial Exclusion Now?Focus on Inclusive Growth
Banking Technology has arrived
Realisation that Poor is bankable
-
7/29/2019 Financial Incl Final
6/15
What has been done so far
Business Correspondent (BC) Model for low cost
door step banking services in remote villages .
Board approved Financial Inclusion Plans (FIPs) ofbanks for 3 years,starting April 2010 .
Roadmap to cover villages of above 2000
population by march 2012
-
7/29/2019 Financial Incl Final
7/15
Mandatory opening of 25 % of new branches in
unbanked rural centers.
Guidelines for convergence between ElectronicBenefit Transfer and FIP have been issued.
Pricing for banks totally freed . Interest rates on
advances totally deregulated.
-
7/29/2019 Financial Incl Final
8/15
Approach adopted by RBI-
Achieving planned, sustained and structured financial
inclusion.
Technology-To be fixed first.
Multi-channel approach (Handheld devices, mobiles,
cards, Micro-ATMs, Branches, Kiosks,etc.)
-
7/29/2019 Financial Incl Final
9/15
Front-end devices transactions must be seamlessly
integrated with the banks CBS.
Coverage- Ensure Transparency.
What is meant by BankingCoverage?A village is covered by banking service if either abank branch is present or a BC is physically
present or visiting that village.
-
7/29/2019 Financial Incl Final
10/15
-
7/29/2019 Financial Incl Final
11/15
-
7/29/2019 Financial Incl Final
12/15
Financial literacy creates awareness to invest
more money, leads to liquidity crunch in the
market and helps in economic growthsimultaneously.
Availing credit facilities would help farmers to
produce more and that would increase GDP.
And small traders would also get benefit to
manufacture more units,that would increase
employment,in turn again a growth factor.
-
7/29/2019 Financial Incl Final
13/15
Brings transparency in the system,which
leads to make trust of people and
investors also.
It would attract more FDI also.
It would uplift the standard of living.
-
7/29/2019 Financial Incl Final
14/15
-
7/29/2019 Financial Incl Final
15/15