Are We Financially Included? An Analysis at Grass Root Level

Abstract

Financial inclusion has become one of the most critical aspects in the context of inclusive growth and sustainable development in the developing countries like India. Financial inclusion is a process of ensuring access to suitable financial products and services needed by susceptible groups such as weaker sections and low-income groups at an affordable cost in a fair and transparent manner by mainstream financial institutional players. Even after 60 years of independence, a large section of Indian population still remains unbanked. As per census 2011, only 58.7% of households are availing banking services in our country.Financial inclusion proceeds towards integration of people who are economically and socially excluded from access to easy, safe and affordable credit and other financial services. Due to lack of financial inclusion among the lower income households, their protection from external economic shock becomes miniscule. As a result, income disparity leads to vicious circle of poverty which continues to persist in the lower income groups.This paper firstly aims at analysing efforts taken by government of India secondly find out the challenges which create hindrances for the implementation of initiative taken by government of India for building financial inclusion and thirdly design strategies to ensure maximum financial inclusion for under privileged and unbanked sector.