Definition Of Financial Inclusion As Per Rbi

What is financial inclusion.

Definition of financial inclusion as per rbi. Financial inclusion is defined as the availability and equality of opportunities to access financial services 1 it refers to a process by which individuals and businesses can access appropriate affordable and timely financial products and services. Board approved financial inclusion plan fips to. 5 682 in rural and 20 346 in the urban areas. 2 4 rbi working paper study sadhan kumar 8 2011 worked out an index on financial inclusion ifi based on three variables namely penetration number of adults having bank account availability of banking services number of bank branches per 1000 population and usage measured as outstanding credit and deposit.

The existing set up where 89 81 per cent branches are in rural area most suited to the mission of financial inclusion. Financial inclusion as the name suggests is the pursuit of delivering financial services including payments savings credit etc to people of low income and disadvantaged sections of the society at affordable costs. Concrete definition of financial inclusion which they either developed on their own or adopted from an international standard definition. Download free ebook here for all banking exams other exams like rbi grade b sebi grade a nabard grade a b.

It is an ambitious strategy which aims to strengthen the ecosystem for various modes of digital financial services in all tier ii to tier vi centres to create the necessary infrastructure to move towards a less cash society by march 2022. The group is chaired by the deputy governor reserve bank of india and has representatives from all regulators and the finance ministry. 4 rbi s direction to banks all villages with population over 2000 to have access to financial services through a banking outlet by march 2012 harness low cost technology and innovate low cost business model. On an average 7 176 people served by the post offices.

5 25 a technical group on financial inclusion and financial literacy of the fsdc sub committee was set up to co ordinate the efforts on financial inclusion and literacy at the policy level. Mohanty rbi 2015 has set the vision for financial inclusion as convenient access to a basket of basic formal financial products and services that should include savings remittance credit government supported insurance and pension products to small and marginal farmers and low. These include banking loan equity and insurance products 2 3 financial inclusion. Rangarajan financial inclusion may be defined as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections.