‘ICT Supported Financial Inclusion for Inclusive Growth – for New Age Private Banks in India’

Abstract

“Financial Inclusion is a delivery of Banking Services at an affordable cost to the vast sections of the disadvantaged and low income groups.” In this research work, an attempt has been made to have an insight into the different activities undertaken by the Government for the Financial Inclusion in India during the last few years. The programmes launched by some selected New Generation Private Sector Banks in India are also studied to know the present status of Financial Inclusion in India. It is a descriptive type of research work based on secondary data which has been collected from the web sites of the R.B.I., Ministry of Finance and the Banks selected for the study. The data related to the Financial Inclusion in India over the last 10 years has been considered for the research work. Financial Inclusion inculcates the savings habits among the people, saves the poor people from the vicious circle of debt from the informal sector.The New Age (Generation) Private Sector Banks are those which are established after 1993 under the new rules and regulations of R.B.I. These Banks have proved themselves as the most efficient Banks providing technology enabled Banking and Financial Services. ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank, etc. are some of the examples of out of total 9 Banks of this type. The private Banks have been intentionally selected to know how much they are serious about the problem of financial exclusion and what efforts they are taking for the improvement of the deprived class of the society. Financial Inclusion is the key factor for the inclusive growth of the society. So as per the recommendations of the Khan Committee (2005). RBI issued guidelines to the Banks to extend their services to the unbanked areas through Business Correspondents with the help of ICT support. Pradhan Mantri Jan Dhan Yojana is playing an important role in the Financial Inclusion in the country. The National Digital Mission (NDLM) is working for the digital literacy among the people for improving their communication and accessibility to financial and other services. Attempts through various schemes like Zero Balance Account, Relaxation on KYC Norms, General Purpose Credit Cards, Easy Credit and Free Money Transfers, Financial Literacy Camps, Business Correspondents, Use of Technology, Branches in Unbanked and Rural Areas, etc. will definitely improve the financial condition of the people and it will boost the economic development of the nation. However, there is need to include more number of beneficiaries for the improved status of Financial Inclusion in the country.