Financial Inclusion in India – Major Issues

Abstract

The aim of financial inclusion is to empower the marginalized and underprivileged sections of the society in economic and social sense so that they contribute to the national agenda. Though a lot of focus has been given on this and many policies has been formulated and implemented, the results from these drives are not as per the expectation. The study delves into issue which ails the policies or the stakeholders who are at the fore front of implementation for the FI drives. Use of appropriate technology and financial viable business models are extremely necessary for the suitability of the financial inclusion programs. A relook is required at the present regulatory framework which can work cohesively with the issuers and consumers of such schemes. A combination of viable business strategies targeted towards the population at the bottom of the pyramid, taking care of transaction cost by leveraging technology and appropriate regulatory environment would ensure much needed success of financial inclusion and help the country achieve inclusive growth.