Financial Inclusion and Distributive Justice

Abstract

The major focus of the Union Budget for the financial year 2011-12, 2012-13 and 2013-14 was to achieve the larger aim of the financial inclusion. It focuses on the poor who do not enjoy the formal financial institutional support and get them out of the clutches of local money lenders. The objectives of the study are to scrutinize the achievement of the Government of India in pursuing the goal of the financial inclusion. Simultaneously the research work focuses on in-depth study of different school of thoughts of distributive justice and to explore the common interfaces between the financial inclusion and distributive justice. The methodology used for the proposed study is based on secondary information available from several research articles prevalent in the different reputed national and international journals in the sphere of financial inclusion. Apart from these, the data has been collected from the database of the Reserve Bank of India and the Ministry of Finance, Government of India as well as from the different published reports. The proposed study has identified the gap between the Pareto Optimality and Social Optimality. The Pareto Optimality organisation is one in which any change that makes some people better off makes some others worse off. Social Optimality implies maximisation of social welfare. The same can be achieved when efficient allocations of resources are accompanied with distributive justice. The dream of real financial inclusion will be materialized only when the entire population of the nation will be able to become the beneficiary from the different financial reforms made by the different regulatory apex bodies of the country such as the Reserve Bank of India, the Security Exchange Board of India and Insurance Regulatory Development Authority of India.