Financial Inclusion and Growth of Banking Services in India
Uttam Kumar Purbey
Financial inclusion promotes thrift and develops culture of saving, improves access to credit both entrepreneurial and personal emergency and also enables efficient payment mechanism. For achieving growth of business banks have to take on the role of an advisor for poor and disadvantaged as the right advice at a difficult time can go a long way. In order to expand the credit and financial services to the wider sections of the population, a wide network of financial institutions has been established over the years in India. Banks should give wide publicity to the facility of no frills account. With the help of technology banking products can get access in remote areas also. ATMs cash dispensing machines can be modified suitably to make them user friendly for people who are illiterate, less educated or do not know English. The involvement of Self Help Groups and Micro Finance Institutions is also must for development of effective financial inclusion models by commercial banks. Recently, the RBI Governor Raghuram Rajan outlined, in conceptual terms, what inclusion should be. “Simplicity and reliability in financial inclusion in India, though not a cure all, can be a way of liberating the poor from dependence on indifferently delivered public services and from venal politicians,” Thus, the objective of Financial Inclusion is to extend financial services to the large hitherto un-served population of the country to unlock its growth potential. In addition, it strives towards a more inclusive growth by making financing available to the poor in particular.