Financial Inclusion Through India Post

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FINANCIAL INCLUSION THROUGH INDIA POST
Dr. Joji Chandran PhD
ABSTRACT
India is having the most widely distributed post office system in the world. With 1,55,333 post offices, the India post comes under the Department of Posts which is a part of the Ministry of Communications and Information Technology under the Government of India. The wide distribution network of India post is one important factor that favours india post as a channel for financial inclusion in India. The search of financial inclusion appears to be a tough task. Sustained growth of the nation and its continued prosperity depend critically on universal financial services covering all people. Further, empirical evidence shows that inclusive financial system
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Thus, initiatives in this regard were taken by building an institutional frame work through nationalization of banks, creation of regional rural banks. The government sponsored several programmes and projects to bring the excluded poor into the mainstream “development”. These programmes failed achieve its goals. And many now believe that government assistance to the poor often creates dependency and disincentives that make matters worse, not better. Moreover, despite decades of aid, communities and families appear to be increasingly fractured, offering a fragile foundation on which to build.
Table No.1. Bank Penetration Rates among working age paid workforce’s in India Workforce Category | Total | Rural | Urban | All earners aged 18-59 years | 45% | 38% | 62% | Shopkeepers | 72% | 65% | 79% | Dairy farmers | 59% | 59% | 62% | Traditional farmers | 45% | 45% | 51% | Street Vendors | 39% | 35% | 45% | Semi & Skilled wage labourers | 34% | 32% | 37% | Artisans & Craftsman | 26% | 22% | 37% | Home based workers | 25% | 20% | 38% | Agricultural wage labourers | 14% | 14% | 12% | Other daily wage labourers | 18% | 15% | 26% |
Source: Invest India Incomes and Savings Survey, 2007
While considering the total number of customers and the total number of branches, the post office savings bank is the largest bank in India. The bank does not discriminate between rich customer or a poor customer.
One of the biggest problems in
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