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    Financial Inclusion Presentation

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    Nitish Sen
    This document discusses financial inclusion in India. It defines financial inclusion as ensuring access to financial services and credit for vulnerable groups at affordable costs. It notes that many Indian households lack access to basic amenities. Financial inclusion is essential for inclusive growth and development. The document outlines types of financial exclusion, benefits of greater inclusion, and measures taken by the Indian government to promote inclusion through expanded access to bank accounts, credit products, remittances, insurance, and other services. It provides updates on recent financial inclusion initiatives launched in Bihar and by CGAP.

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    Financial Inclusion Presentation

    Uploaded by

    Nitish Sen
    88 views14 pages
    This document discusses financial inclusion in India. It defines financial inclusion as ensuring access to financial services and credit for vulnerable groups at affordable costs. It notes that many Indian households lack access to basic amenities. Financial inclusion is essential for inclusive growth and development. The document outlines types of financial exclusion, benefits of greater inclusion, and measures taken by the Indian government to promote inclusion through expanded access to bank accounts, credit products, remittances, insurance, and other services. It provides updates on recent financial inclusion initiatives launched in Bihar and by CGAP.

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    FINANCIAL INCLUSION PRESENTATION

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    This document discusses financial inclusion in India. It defines financial inclusion as ensuring access to financial services and credit for vulnerable groups at affordable costs. It notes that many Indian households lack access to basic amenities. Financial inclusion is essential for inclusive growth and development. The document outlines types of financial exclusion, benefits of greater inclusion, and measures taken by the Indian government to promote inclusion through expanded access to bank accounts, credit products, remittances, insurance, and other services. It provides updates on recent financial inclusion initiatives launched in Bihar and by CGAP.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    88 views14 pages

    Financial Inclusion Presentation

    Uploaded by

    Nitish Sen
    This document discusses financial inclusion in India. It defines financial inclusion as ensuring access to financial services and credit for vulnerable groups at affordable costs. It notes that many Indian households lack access to basic amenities. Financial inclusion is essential for inclusive growth and development. The document outlines types of financial exclusion, benefits of greater inclusion, and measures taken by the Indian government to promote inclusion through expanded access to bank accounts, credit products, remittances, insurance, and other services. It provides updates on recent financial inclusion initiatives launched in Bihar and by CGAP.

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    You are on page 1of 14

    FINANCIAL INCLUSION

    PRESENTED BY- Nitish sen


    DEFINATION

    • The process of ensuring access to


    financial services and timely and
    adequate credit where needed by
    vulnerable groups such as weaker
    sections and low income groups at an
    affordable cost

    2
    WHY FI TARGETTING THE WEAKER
    SETIONS
    • 37.7% of Indian households do not have
    access to a nearby water source
    • 49% do not have a proper shelter
    • 69.5% do not have access to suitable toilets
    • 85.2% of Indian villages do not have a
    secondary school and
    • 43% of Indian villages do not have an all-
    weather road connecting them

    3
    FI essential

    For inclusive growth which is necessary


    for sustainable overall economic growth
    – In developed economies, focus is on
    small population
    – In developing economies (India), focus is
    on majority excluded

    4
    Types of Financial Exclusion

    (i) exclusion from payment system : not


    having access to bank accounts
    (ii) exclusion from formal credit markets
    leading to approaching informal/
    exploitative markets

    5
    Benefits of Greater FI

    • For the common man–escape from the clutches of


    money lenders; sending / receiving remittances; no
    need to hold savings in cash etc.

    • For the banks–achieving access to a large


    untapped pool of customers.

    • For the Govt.-ensuring flow of aid / grants to the


    targeted beneficiary.

    • For the RBI -spread of banking culture and


    extension of the reach of formal financial system.
    6
    Financial Inclusion - Scope

    • Financial Inclusion should include access to


    financial products and services like,
    – Bank accounts – check in account
    – Immediate Credit
    – Savings products
    – Remittances & Payment services
    – Insurance - Healthcare
    – Mortgage
    – Financial advisory services
    – Entrepreneurial credit

    7
    Financial Inclusion : The Indian Perspective
    Empowerment
    Bank A/Cs - Credit Cards of SHGs
    Savings

    Payments +
    Remittances Financial Inclusion Insurance

    Lack of
    Financial Affordable Credit Assets (for
    Advice
    Collateral)

    12/08/21 JKSHIM, Nitte, India 8


    Measures for promoting financial inclusion

    • Products
    – No frill account
    – KYC norms simplified
    – Introduction of GCC
    – OTS for overdue loans upto
    Rs.25,000/-
    – KCC

    9
    What Have We Achieved

    • Number of No-Frill Accounts – 28.23 million (as on


    Dec. 31, 2009)
    • Number of rural bank branches – 31,727 constituting
    39.7% of total bank branches (as on June. 31, 2009)
    • Number of ATMs – 44,857 (as on May 31, 2009)
    • Number of POS – 4,70,237 (as on May 31, 2009)
    • Number of Cards – 167.09 million (as on May 31, 2009)
    • Number of Kisan Credit cards – 76 million
    • Number of Mobile phones–403 million (as on Apr.30,
    2009)
    – out of which 187 million (46%) do not have a
    bank account

    10
    Problems / Difficulties

    • Scaling up of activities
    • Transaction cost too high
    • Appropriate business model yet to
    evolve
    • BC model too restrictive
    • Limitation of cash delivery points
    • Lack of Interest / Involvement of Big
    Technology Players
    11
    CURRENT NEWS
    • Financial inclusion scheme rolled out in
    bihar on Aug 28,2010
    Glodyne Technoserve, a technology services
    company in partnership with the Government of
    Bihar has rolled out rural Financial Inclusion
    services in the state providing banking facility to
    the 25 million ‘E-shakti’ MNREGS (National
    Rural Employment Guarantee Scheme) project.
    The scheme was rolled out by Chief Minister of
    Bihar, Mr. Nitish Kumar on Friday in Patna.

    12
    Contd…

    • Financial inclusion regulation center launched


    by CGAP on Aug 21,2010
    Plugging the information gap on financial
    inclusion laws and regulations, the
    Consultative Group to Assist the Poor (CGAP)
    has launched a Financial Inclusion Regulation
    Center, which provides a broad, timely
    collection of the laws and regulations most
    relevant to key financial inclusion topics

    13
    Thank You

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