Dear friends
Greetings...!!!
I hope you all are at best of your time and health.
Today we will talk about one of the most sought out topics in the world of banking and finance.
Our government as well as RBI has taken it as one of the most important objectives which should be achieved as soon as possible in order to accelerate the growth of our economy.
Yes , you are right. I am talking about " Financial Inclusion". So first we will see what does it mean...??
Financial inclusion is basically involvement of all segments of society in financial system of the country.
Financial inclusion is basically involvement of all segments of society in financial system of the country.
In layman's language financial inclusion means access to banking services i.e having a bank account.
What is the need for financial inclusion ....???
1. It is a very effective tool for poverty elevation.
2. It helps in accumulation of large amount of capital which can be invested for development .
3. It brings transparency in the system.
4. It promotes inclusive growth i.e growth of all segments of the society.
Who is the target audience ????
Obviously higher class and upper medium class of our society are already actively participating and contributing in financial activities. But it is lower middle class and lower class of society who are still struggling to get under the umbrella of banks and other financial institutions.
So , the main target for financial inclusion is lower middle class and lower class of the society.
Pillars of Financial inclusion :
Only having a bank account is not enough. Apart from a bank account people should also have easy access to credit facilities and insurance. So following are considered as 3 major pillars of Financial inclusion :
.
What is the need for financial inclusion ....???
1. It is a very effective tool for poverty elevation.
2. It helps in accumulation of large amount of capital which can be invested for development .
3. It brings transparency in the system.
4. It promotes inclusive growth i.e growth of all segments of the society.
Who is the target audience ????
Obviously higher class and upper medium class of our society are already actively participating and contributing in financial activities. But it is lower middle class and lower class of society who are still struggling to get under the umbrella of banks and other financial institutions.
So , the main target for financial inclusion is lower middle class and lower class of the society.
Pillars of Financial inclusion :
Only having a bank account is not enough. Apart from a bank account people should also have easy access to credit facilities and insurance. So following are considered as 3 major pillars of Financial inclusion :
- Micro savings
- Micro Finance
- Micro Insurance
Micro saving is the special deposit products designed for the need of target audience considering their low and irregular income.
Micro finance is the easy access to credit facility so that people can meet their need for funds.
Micro insurance is the suitable insurance products designed for target audience to hedge them from various risks.
This is all for today. We will see different aspects of financial inclusion and various initiatives taken by governments and RBI for achieving 100 % financial inclusion in detail in coming days.
Till then
Take care friends
&
Happy Reading
.
