A STUDY ON FINANCIAL INCLUSION IN INDIA
AUTHOR- Poorva Tiwari
MBA (Financial Management) student, Galgotias University (School of Finance and Commerce)
Email Id – poorvatiwariji@gmail.com
ABSTRACT
Financial inclusion refers to the process of providing access to financial services and products, such as banking, credit, insurance, and investments, to individuals and communities who are excluded from the formal financial system. This includes low-income households, rural populations, women, and other marginalized groups.
Financial inclusion is important because it allows people to manage their money, save for the future, and invest in their businesses or education. It can also promote economic growth, reduce poverty, and increase social mobility. Lack of financial inclusion, on the other hand, can lead to financial insecurity, limited access to credit, and exclusion from the benefits of the formal economy
Financial inclusion can be achieved through a variety of measures, including the expansion of banking services, the development of mobile banking and digital payment systems, and the provision of financial education and consumer protection. Governments, financial institutions, and international organizations are working together to promote financial inclusion around the world.
Financial inclusion is closely linked to economic development. Access to financial services, such as savings accounts, credit, insurance, and digital payments, can help individuals and businesses to grow their incomes and assets, invest in education and training, and create jobs and other economic opportunities. This, in turn, can stimulate economic growth, reduce poverty, and promote greater equality and social inclusion
For example, financial inclusion can help small businesses and entrepreneurs to access credit and other financial services, which can enable them to expand their operations, invest in new equipment or technologies, and create jobs. This can help to stimulate local economies and promote economic growth
Similarly, access to savings accounts and other financial services can help households to better manage their finances, build assets, and invest in education and other human capital development. This, in turn, can lead to increased productivity, better job opportunities, and higher incomes, contributing to overall economic development.
