Initiatives For Financial Inclusion Of India

Retail banking is, however, quite broad in nature - it refers to the dealing of commercial banks with individual customers, both on liabilities and assets sides of the balance sheet. Fixed, current / savings accounts on the liabilities side; and mortgages, loans (e.g., personal, housing, auto, and educational) on the assets side, are the more important of the products offered by banks. Related ancillary services include credit cards, or depository services. Retail banking refers to provision of banking services to individuals and small business where the financial institutions are dealing with large number of low value transactions. This

Poverty in rural areas of India is associated with multiple factors. Rural population is primarily depended upon agriculture. Unusual pattern of rain and low standard irrigation system severely affect the incomes of the people living in rural areas. Caste system of India still exists in rural areas where people belonging to lower castes lack the opportunities to grow and subsequently earn

population. Nearly 70 per cent of Indian villagers do not have a bank account, and tapping them

Food security is quite urgent when it comes to the poor farmer households is increasing every time it turns. Data show based on the 2003 Census of Agriculture, the number of households smallholders farmers ( RTPG ) who have land between 0.1 to 0.25 ha increased quite sharply, from approximately 9.4 million to 13.3 million RTPG in the period 1993-2003. This shows that a growing number of farmers who depend on the narrow land then being poor and experiencing the food insecurity. Agricultural census in 2013 showed the number of farm household (RTP) equal to 26.126 million RTP; decreased by 16.18% compared to the

Now-a-days the topic of financial inclusion is standing as an emerging new model of economic intensification. Financial inclusion is the recent notion which helps to accomplish the sustainable progress of the country, through accessible financial services to the unreached people with the help of financial institutions. Thus it plays a vital role in economic development of the country, by helping in pouring away poverty from the country. The main aim of financial inclusion is to make available banking service by providing access to financial market, credit market and gain knowledge of financial matters. Thus it aims is to provide banking and financial services to all people in a fair, transparent and equitable manner at affordable cost. Reserve bank of India and government plays a key role in promoting financial inclusion for economic development in the country by deepening the penetration of banking, making the banks nationalized, by RRBs establishment, introducing the approach of one person one account and also by launching the self help groups (SHG). Simplifying the KYC norms, interest rates improvisation and providing easy access to credit facilities are some of the key steps taken to strength the process of financial inclusion. The present paper studies the significance of financial inclusion in the economic development of the country. It also attempts to study the coverage of financial inclusion in India, along with its experience gathered by making studies

Right from our childhood days, our parents teach us that save penny and earned penny. The phrase highlights the significance of individual and household savings. With the passage of time, our elders constantly tell us that we should spend less than we earn and save some part for uncertain and better future use. Our elders also educate us to use resources and money according to our income, and our expenses should be less than our income. From the classical days, saving has been considered as one of the element of expansion and growth. In Indian economy, the household sector contributes the lion’s share of the total savings. As far as the household and rural household sector is concerned they have remarkable saving potential which has not been considered seriously by the policy makers and hence, measures have not been chartered to organize these enormous savings.

One, p. 5). The rural sector of India remains vital today as 70% of the total Indian

Since India’s period of instability, the country has embarked on a process of economic reform that aims to put it on a path of rapid and sustained growth (European Commission, 2009). Efforts have seen per capita rates rise, year by year, in particular, from 2008 ($1,016) to 2009 ($1,032), a 6.7% growth rate, noting that income is growing rapidly amongst urban consumers.

Villages comprise the base of Indian society and also represent the real India. It is for these villagers that we need to make sure we build a system that delivers basic social infrastructure in an effective manner. In order to ensure that the fruits of India 's progress are shared by all sections of the society, the government has identified several elements of social and economic infrastructure, critical to the quality of life in rural areas. Its rising middle class demands more than just bread. Food and agricultural operators based in India and abroad are responding to the country’s demands with an array of high-quality food products that contribute to India’s increasing nutritional requirements and add value to India’s agricultural supply chain. However even today there are disparities of development between the rural and the urban sector. In spite of planning, however, the regional disparity remained a serious problem in India. A new controversy in this respect is whether growth rates and standard of living in different regions would eventually converge or not. The convergence postulates that when the growth rate of an economy accelerates, initially some regions with better resources would grow faster than others. But after sometime, when the law of diminishing marginal returns set in, first growth rates would converge, due to differential marginal productivity of capital (higher in poorer regions and lower in

A report submitted in partial fulfillment of the requirements of MBA Program of IBS – Hyderabad

Urban Co-Operative banking Sector is a vital constituent of co-operative banking system framework operation in the nation. These organizations assume an imperative part in the financial enrollment of lower and middle salary class of people. The Reserve Bank of India in its yearly provide details regarding patterns and advance in banking expresses that urban banks women urban banks are critical purveyors of credit to small borrowers and to powerless segments of the general public however is not turning out with any steady arrangements that will fortify the part of women UCBs.

The Indian rural market is much larger when compared to the urban market in terms of population and number of households, and also by way of geographic dispersal. The rural market is the new driving force of the “Indian Consumption Story”. With only 31.16% of the Indian population living in urban areas and 68.84% residing in the villages (Census 2011), it is only a matter of time before rural India takes its rightful place in the Indian growth story. Faced with a threat of declining growth rates in future urban markets, businesses have started focusing on the huge and relatively untapped rural Indian market. The major

ICICI Bank was built by the Industrial Credit and Investment Corporation of India (ICICI), an Indian budgetary foundation, as a completely possessed backup in 1994. The guardian organization was shaped in 1955 as a joint-wander of the World Bank, India 's open segment banks and open division insurance agencies to give task financing to Indian industry.[17][18] The bank was at first known as the Industrial Credit and Investment Corporation of India Bank, before it transformed its name to the shortened ICICI Bank. The guardian organization was later united with the bank.

Indian Financial Sector is a well diversified arena experiencing high growth and development. The financial sector of India is comprised of commercial banks, insurance companies, non-banking cooperations, pension and mutual fund houses and lot more other financial institutions serving the Indian Economy. However, the financial sector is a major ly dominated by the Bankin Sector where the commercial banks comprise of 60 percent of total assets held by the financial system followed by Insurance Sector. Apart from the Banks and Insurance Companies, financial sector also comprise of Non-Banking Finance Companies also known as NBFC which in operate in specialized segments of micro finance,

As the economy grows and becomes more sophisticated, the banking sector has to develop parallely in a manner that it supports and stimulates such growth. With increasing global integration, the Indian banking system and financial system has as a whole had to be strengthened so as to be able to compete. India has had around two decade of financial sector reforms during which there has been substantial transformation and liberalization of the whole financial system.. Until the beginning of the 1990s, the state of the financial sector in India could be described as a