Financial Inclusion

This necessitated the need for development of regulatory measures for the industry. Bank regulation is a legal structure by which all financial

There are some policy recommendations based the findings of this essay. It is a positive thing that enlarges the coverage of financial services, increasing the opportunities of access in financial services and activities. It will benefit for decrease the level of inequality. It claims that by allowing the poor an opportunity to get access into the financial

Very often than not there are regulations implemented as a means to dissolve an issue that needs to be resolved as soon as possible and is implemented immediately. However these needed resolutions end up affecting the little man such as community banks.

The regulatory reform process is currently moving from policymaking to the implementation phase. The implications of regulatory reform for banks has never been greater, and the ability to navigate the new environment will require strong processes that integrate regulatory compliance and changes to the business model. Planning has never been more important as reaction to each regulation could be very costly.

New financial regulations have been created and existing regulations have been revised in the aftermath of the financial crisis. The role of financial regulatory policy in the financial crisis is sometimes presented in a way that will help the economy improve. Deregulation was an approach that the economy was implementing towards to. According to Kroszner and Strahan in the reading about What Drives Deregulation?, in order to achieve a positive theory of regulatory change, it is crucial for an economy to characterize the regulatory process as one in which “well-organized groups use the power of the state to capture rents at the expense of more dispersed groups.” (Kroszner, Strahan Pp 1438) This suggested that the elimination of restrictions on bank branching will benefit the theories of regulatory change.

Financialization can be shown in three perspectives. Firstly, financialization implicates finance regains dominant power in capitalism. Secondly, autonomy of financial institutions increases because of the increase in financial interests. Thirdly, wide range of economic actors is integrated into financial markets due to financial innovation and expansion of financial sector (Palley, 2007).

As a result, policymakers, congressmen, local and international organizations, and governments would be able to use this work for the financial and banking reform. At the end, the purpose is bringing some balance between TBTF banks and small and

A two-track approach that banking integration adopts receives support from attempts to harmonize regulations regionally. Subsequently, it is upon member states to begin tackling the restrictions facing wholesale banking immediately. This tends to delay the completion of liberalizing the cross-border deposit taking/retail banking.

Thus, on the whole, Financial Inclusion has the potential to bring in the unbanked masses into the formal banking system, channelize their savings, stoke their entrepreneurial ambitions by making available credit and thus give a fillip to the

This is the second Global Financial Development Report published by the World Bank. It seeks to contribute to enhancing the knowledge of financial inclusion around the world. In the recent times, financial inclusion has become an important aspect for economic and social development of an economy and has become a significant topic of discussion for the policy makers, market practitioners etc. Financial inclusion has been given a lot importance in our country and this can be proven by the recently launched ‘Pradhan Mantri Jan Dhan Yojana’ which aims to provide a bank account for every household. This report provides us with new data and research filling certain gaps in the knowledge of financial inclusion.

The generation of self-employment in non-farm activities requires investment in working capital. However, at low levels of income, the accumulation of such capital may be difficult. Under such circumstances, loans, by increasing family income, can help the poor to accumulate their own capital and invest in employment-generating activities (Hossain, 1988). Commercial banks and other formal institutions fail to cater for the credit needs of smallholders, however, mainly due to their lending terms and conditions. It is generally the rules and regulations of the formal financial institutions that have created the myth that the poor are not bankable, and since they can’t afford the required collateral, they are considered uncreditworthy (Adera, 1995). Hence despite efforts to overcome the widespread lack of financial services, especially among smallholders in developing countries, and the expansion of credit in the rural areas of these countries, the majority still have only limited access to bank services to support their private initiatives (Braverman and Guasch, 1986). In the recent past, there has been an increased tendency to fund credit programmes in the developing countries aimed at small-scale enterprises. In Kenya, despite emphasis on increasing the availability of credit to small and microenterprises (SMEs), access to credit by such enterprises remains one of the major constraints they face. A 1995 survey of small and

Even after 68 years of independence, still large section of population remains unbanked which mainly include poor people who don’t have regular income or people who are laborers and also large number of farmers are excluded from financial services. This malaise has led generation of financial instability in our country and lower income group faces many problems in terms of financial services because access to financial products and services is very costly for them they can’t effort such charges that’s why they are unbanked today. However, in the recent years the government and Reserve Bank of India has been pushing the concept and idea of financial inclusion.

“FINANCIAL INCLUSION [PRADHAN MANTRI JAN-DHAN YOJANA (PMJDY)] WITH REFERENCE TO JAMMU AND KASHMIR BANK LIMITED SRINAGAR”

4) Associate with social cause: The bank can also associate itself with social causes like providing relief aid patients, funding towards natural calamities. But this falls in the 4th quadrant so the bank should neglect it.

Financial inclusion is the new concept which helps to attain the sustainable development of the country. It provides banking and financial services to all people in a fair, visible and reasonable manner at affordable cost. The poorer income Households often lack to access bank account and have to spend time money for several visits to achieve the banking services.