Financial Inclusion

Financial inclusion is finance term. This term is used in banking sector. If any bank provides his banking services at very low cost to the poor people of any country. Then these financial services are called financial inclusion. This finance term is becoming so popular because every bank is doing some activities of financial inclusion.

We can include following banking services as financial inclusion:-

• Provide the facility to open free saving account to rural customers.
• Provide loan at very low rate to poor rural peoples of India.

Financial inclusion term is also used in govt. social work. Providing facilities free of cost to the poor section for upgrading them . Govt. of India is doing financial inclusion activities by operating Sarva Shiksha Abhiyan, Rural Employment Guarantee Scheme.

Objectives of Financial inclusion

According to UN the main objectives of financial inclusion are as follows:
Financial products like saving, short and long term credit, leasing and factoring, mortgages, insurance, pensions should provide to poor people at lower cost.

  Importance of Financial Inclusion:

1. For Reaching every Customer of Rural Sector : With the help of financial inclusion movement, RBI wants that every bank should reach to every customer at rural area.

2. Micro credit during emergency : At the time of emergency, bank should open their doors for micro credit, It can be only possible, if bank will use financial inclusion practically. Otherwise, bank will just become a middle man whose sole aim is to earn interest. But today, with financial inclusion, it can become just like NGO and can work with 3.3 millions NGO of India for progress of India.

3. Electronic fund transfer at Village Level : Now, revolution of mobile has reach up to village. With financial inclusion movement, banks has to start all ATM services and e-banking services at village level. So, better understanding of financial inclusion is must.