What is Financial Inclusion

Financial Inclusion

What is Financial Inclusion
What is Financial Inclusion
Financial inclusion is a method of offering banking and financial services to individuals. It aims to include everybody in society by giving them basic financial services regardless of their income or savings. It focuses on providing financial solutions to the economically underprivileged. The term is broadly used to describe the provision of savings and loan services to the poor in an inexpensive and easy-to-use form. It aims to ensure that the poor and marginalised make the best use of their money and attain financial education. With advances in financial technology and digital transactions, more and more startups are now making financial inclusion simpler to achieve.
Financial inclusion definition
Financial inclusion is the process of ensuring access to financial products and services needed by vulnerable groups at an affordable cost in a transparent manner by institutional players.
When was financial inclusion concept introduced in India?
The concept of financial inclusion was first introduced in India in 2005 by the Reserve Bank of India.
Objectives of financial inclusion
The objectives of financial inclusion are to provide the following:
  • A basic no-frills banking account for making and receiving payments
  • Saving products (including investment and pension)
  • Simple credit products and overdrafts linked with no-frills accounts
  • Remittance, or money transfer facilities
  • Micro insurance (life) and non-micro insurance (life and non-life)
  • Micro pension
Financial inclusion in India
PMJDY: Around 192.1 million accounts have been opened under the Pradhan Mantri Jan Dhan Yojana (PMJDY). These zero-balance bank accounts have been accompanied by 165.1 million debit cards, a life insurance cover of Rs 30,000 and an accidental insurance cover of Rs 1 lakh.
Other than PMJDY, there are several other financial inclusion schemes in India — Jeevan Suraksha Bandhan Yojana, Pradhan Mantri Vaya Vandana Yojana, Pradhan Mantri Mudra Yojana, Stand Up India scheme, Venture Capital Fund for Scheduled Castes under the social-sector initiatives, Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), Varishtha Pension Bima Yojana (VPBY), Credit Enhancement Guarantee Scheme (CEGS) for scheduled castes, and Sukanya Samriddhi Yojana.
Why is financial inclusion important?
Financial inclusion strengthens the availability of economic resources and builds the concept of savings among the poor. Financial inclusion is a major step towards inclusive growth. It helps in the overall economic development of the underprivileged population. In India, effective financial inclusion is needed for the uplift of the poor and disadvantaged people by providing them with the modified financial products and services.

Latest Updates on Financial Inclusion

Sustainable finance will foster economic growth: Deputy Guv Swaminathan J

3 min read Last Updated : Oct 26 2023 | 7:00 PM IST
Jan-Dhan scheme biggest instrument of financial inclusion: FM Sitharaman

2 min read Last Updated : Oct 20 2023 | 11:29 AM IST
RBI's financial inclusion index printed at 60.1% in March 2023, shows data

1 min read Last Updated : Sep 15 2023 | 11:09 PM IST
The next orbit of financial inclusion will be in the offline world

6 min read Last Updated : Sep 10 2023 | 10:02 PM IST
Focus on four 'Is' to make India a developed nation by 2047: Sitharaman

2 min read Last Updated : Jul 29 2023 | 4:19 PM IST
Financial services secy asks banks to achieve financial inclusion targets

2 min read Last Updated : Jul 20 2023 | 10:41 PM IST
RBI Governor launches financial inclusion dashboard 'Antardrishti'

2 min read Last Updated : Jun 05 2023 | 11:28 PM IST
India's financial inclusion journey can be example for other countries: UN

5 min read Last Updated : May 05 2023 | 1:28 PM IST
Achieve targets under financial inclusion plans: Finance ministry to PSBs

2 min read Last Updated : Apr 13 2023 | 9:50 PM IST
Breaking barriers, building inclusion

5 min read Last Updated : Mar 09 2023 | 10:29 PM IST
Global Partnership for Financial Inclusion G20 meet concludes in Hyderabad

1 min read Last Updated : Mar 07 2023 | 9:54 PM IST
Paytm inks pact with Andhra govt for initiatives in financial inclusion

2 min read Last Updated : Mar 06 2023 | 10:53 PM IST
FinMin meets private sector bankers, reviews progress of flagship schemes

1 min read Last Updated : Jan 24 2023 | 11:28 PM IST
Internet connectivity key to India's robust financial inclusion: SBI chief

2 min read Last Updated : Jan 19 2023 | 11:47 PM IST
India great example of how financial inclusion can work: German envoy

2 min read Last Updated : Jan 12 2023 | 3:01 PM IST
World's focus must be on women-led development: Munda at G20 event

2 min read Last Updated : Jan 11 2023 | 12:02 PM IST
Financial inclusion, remittance cost focus areas in G20 meeting

2 min read Last Updated : Jan 08 2023 | 11:08 PM IST
Aadhaar's new goal: AePS to facilitate financial inclusion in rural areas

4 min read Last Updated : Dec 12 2022 | 07:36 AM IST
69% Indian households struggle with financial insecurity, says survey

3 min read Last Updated : Nov 05 2022 | 8:44 PM IST
Merger of PSBs haven't impacted financial inclusion adversely: RBI

3 min read Last Updated : Oct 21 2022 | 11:43 PM IST