FIANCIAL INCLUSION IN INDIA
Introduction:
Financial inclusion is the availability of banking services at an affordable cost to disadvantaged and low-income groups. In India the basic concept of financial inclusion is having a saving or current account with any bank. In reality it includes loans, insurance services and much more.
Why We Need Financial Inclusion: * In the path of super power we the Indians will need to achieve the growth of our country with equality. * To remove poverty from the Indian context everybody will be given access to formal financial services. * Inclusive finance will provide banking related financial transactions in an easy and speedy way. * People will have safe savings along with other allied services like insurance cover, entrepreneurial loans, payment and settlement facility etc. * Opportunity for Banks to increase their business. * Boosting up business opportunities will definitely increase GDP and which will be reflected in our national income growth. * Financial access will attract global market players to our country that will result in increasing employment and business opportunities.
Steps towards Financial Inclusion: * The Reserve Bank of India set up a commission named as Khan Commission in 2004 to look into financial inclusion. * The recommendations of the commission were incorporated into the mid-term review of the policy (2005–06). * Proposal for "no-frills" banking account for the poor. * KYC norms were relaxed for people intending to open accounts with annual deposits of less than Rs. 50,000. * General Credit Cards (GCC) were issued to the poor and the disadvantaged with a view to help them access easy credit. * In January 2006, the Reserve Bank permitted commercial banks to make use of the services of NGOs, SHGs, MFIs and other civil