Financial Inclusion
Financial inclusion or inclusive Financing is the delivery of financial service at affordable costs to sections of disadvantaged and low income segments of society. Or we can say that financial inclusion may be defined as the process of ensuring access to Financial Inclusion in timely and adequate Credit when needed by vulnerable groups such as weaker sections and low income groups at an affordable cost.
Unrestrained access to public goods and services is the sine qua of an open and efficient society. It is argued that as banking services are in the nature of public good it is essential that availability of banking services and payment services to the nature of public good it is essential that availability of banking and payment services to the entire population without discrimination should be the prime objective of public policy. The term Financial inclusion has gained importance since the early 2000s and is a Result of findings about Financial inclusion and it direct correlation to poverty. Financial inclusion is now a common objective for many central banks among the Developing nations
Financial inclusion offers people the following things……
1. Access to Financial Markets
2. Access to Credit Markets
3. Financial Literacy
Objectives of Financial inclusion
1. Access at a reasonable cost for all households and enterprises to the range of Financial services for which they bankable including savings , short and long term credit , leasing and factoring , mortgages , insurance , pensions, payment, local money Transfers and international remittances.
2. Sound institutions guided by appropriate internal management systems, industry performance standards and performance monitoring by the market as well as sound prudential regulation wherever required.
3. Financial and institutional sustainability as a means of providing access to Financial services over time.
4. Multiple providers of financial services wherever feasible so as to bring cost effective and a wide variety of alternatives to customers. Financially excluded sections largely comprise of the following Activities:-
1. Marginal farmers
2. Landless labourers
3. Oral lessees
4. Self Employed and unorganized sector enterprises
5. Urban slum dwellers
6. Migrants
7. Ethnic minorities and society excluded groups
8. Senior citizens
9. Women
Benefits of inclusive financial growth
The benefits of inclusive financial growth can be described :-
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