The Reserve Bank of India (RBI)
has stated that financial inclusion is a process of provide financial services
at a reasonable cost to the people especially from the down sided sections in
the society. The financial services such as timely credit facilities and
accessing financial products like small saving deposits reach the rural people
easily by the formal financial institutions such as banking industries.  Due to the non-availability of banking
facilities, people from remote villages face many hindrances to meet their
basic needs.


 Financial Inclusion is an activity of
facilitating financial services to the unbanked and un reached segments in the
society. Rural India captures a significant role in our country’s economic
growth through services, agriculture, self-employment, construction. But the
penetration and effectiveness of banking services were successfully implemented
in the region of semi-urban and metropolitan areas. The awareness about financial
services and access to financial services were still lacking in the region of
rural areas. Rural people and low income group   people
could not get timely credit to meet their basic and emergency needs. The
financial institution like banking industries can only serve as a path for the
rural as well as low income group people to satisfy their credit needs. The
Reserve Bank of India (RBI) has stated that entry of more bank branches in the
rural and semi-urban areas will cul­tivate the saving habits of rural people;
this indirectly helps to improve the status of financial inclusion in the

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 The RBI has developed Business Correspondent
Model, which acts as the mediator between the poor people and commercial banks
in order to increase the saving habits and create awareness about the banking products
towards rural people in the society. This BC Model instil in the rural people
about the banking credit facilities like agriculture loan to the farmers, small
borrowings and basic savings deposit account facilities to the rural people.
India is a country with huge amount of rural population and highly engaged in
rural activities financial services should be facilitated to the rural people
in a transparent and balanced manner by the formal financial institu­tions. Since
1960’s banking Institutions serve as entry to enhance and promote the degree of
financial inclu­sion in our country. Moreover banking industries has adopted
new technologies which makes banks to increase its potential to satisfy the
demand needs of its customers through the delivery of financial products and
services. Banks has designed a Mobile Banking Technologies to reach its
financial services and products to the customers in rural area at a very low
transaction cost.


CRISIL Inclusix in June 2015 has released the report of financial
inclusion which covers the entire 625 districts of India. It has taken three
different parameters to measure the level of financial inclusion such as bank
penetration, deposit and credit penetration to measure the index of financial
inclusion at national level, State, Regional and District Levels for the fiscal
year 2013. As per the CRISIL Report, India has scored 50.1 IFI (Index of
Financial Inclusion). Demand and supply side factors needs to be taken in
consideration to measure the level of financial inclusion.


Reserve Bank is navigating the path to
financial inclusion by means of regulations and

guidance. It has initiated several measures to help bank and unbank:

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