Role of commercial banks in financial Inclusion An evaluation

Abstract

Fi nancial Inclu sion is a key dri ver of eco nomi c grow th and pove rt y alle viati on around th e newlineglobe. Financial Inclusion is a conscious attem pt to brin g th e un ba11ke d people into fomrnl newlinefin ancial sy stem . It is a pro cess ensures that ease of access , availabilit y and usage of fonnal newlinefmancial system for all members of an econom y . Acce ss to fo nnal financ e may boos t newlineemployment creation , increase investment in human capital and reduc e vulner ab ili ty to eco nomic newlineshocks . The major objectives of Financial Inclusion ar e to pro vi de acc ess to di ffe ren t banking newlineproducts and financial services to protect the financi a l excluded people from unor gani zed sec tor newlinefmance. These banking products and financial services like savin gs account , insuranc e, pa yment s newlineand remittances , loans should offered in a transparent manner at an affordable cost by mai n newlinefinancial institutions in an econom y. Financial Inclusion is important , simply bec aus e it is a newlinenecessary condition for sustainable economic de velopment and inclusi ve gro wth of the count ry . newlineAll stake holders in financial inclusion like SCBs , RRBs , POST OFFICE , MFis , NABARD , newlinePFRDAI and IRDAI will go long away to bring the financial excluded people in the fonnal newlinefinancial system in lndia. newlineGovernment of India has been framed a policy on fmancial inclusion and taking ne w newlineinitiatives to alleviate poverty , job creation and access to fonnal financial services with an newlineaffordable cost. ln this policy environment, Go vernment has launched National Mi ss ion for newlineFinancial Inclusion (NMFI) , namely Pradhan Manthri Jan Ohan Yojana (PMJDY) in August , newline2014 to provide universal banking services for every unbanked household. In in1plementin g newlineFinancial Inclusion , RBI plays a vital role to gi ve directions , guidelines and supe rv ise th e newlinescheduled commercial banks in financial inclusion in India . Thus , Scheduled Conunerci a l Bai1ks newline(SCBs) play a critical role in providing banking products and financial services (suppl y) to all newlineV newlinehouseho