Financial Inclusion: Initiatives of Modi-Led-Government

Abstract

Finance is the basic need for development and expansion. RBI data reveals that only 35% of the Indians have bank account in a formal financial institution and remaining are excluded of taking any benefits from financial services, i.e. Financial Exclusion. Bank accounts are the first step to Financial Inclusion (FI). Thus, the most rapidly developing Asian economy i.e. India is speedily progressing towards the path of Financial Inclusion. The term is in vogue now days in the country and the government along with RBI is making continuous efforts to revolutionize the unbanked areas and provide them with basic financial services. The basic problem in this model is financial illiteracy among the majority population of the country. The position of women in terms of involvement in financial decision making is very low. Hence it makes sense for asking Universities to take up initiatives to spread FI. The ones that have good track record and credential can be financially supported. Along with this, technological development in terms of spreading financial literacy must be focused too. Financial education can be spread Education not just via the internet but also using the mobile apps. The study explores the present scenario of the financial inclusion existing in India; various roles played by Government and RBI (Reserve Bank of India), initiatives taken by various banks with special reference to SBI bank, Federal Bank, ICICI bank, IDBI bank, Canara bank and Indian bank. The paper also highlights the broad major challenges faced by the country to achieve full Financial Inclusion by using the secondary data collection methodology. The data is being collected through research journals, articles, magazines, RBI Reports, World Bank data and online resources.