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Financial Inclusion in IndiaBY: chitracs | Category: Business and Finance | Post Date: 2008-10-11
Financial inclusion means a group of people should take part in growth activities and help to increase economic growth of the country. We cannot say that financial growth has been achieved by opening a bank account, granting huge loan to a single person and closing the account. First, many people have to open an account in a bank, save money regularly so that loans to needy people may be granted on regular basis. It is a process ensuring easy access and usage of financial system for the rich and poor in the country. Who can take part in financial inclusion? The Indian Government wishes that the poor people should be benefited by financial inclusion. They have to be given loans for trading activities or paying back the loan from money lenders. The Reserve Bank of India permits for financial inclusion by allowing banks to grant loan to non-registered bodies, subject to certain norms. By watching the functioning of group activities, the loan may be sanctioned to individuals or groups. The savings, repaying capacity and cash flow are the main criteria. The weaker section of India, still hesitate to take part in financial inclusion. The low income people should be approached by banks personally. They should be asked to open bank account for saving purpose. Small loans may be granted for them to encourage cash flow. At an affordable cost, the low income group should be allowed credit facility. The financial facilities should be arranged for poor people living in rural and semi urban areas. The poor people in urban area should not be left out. By opening microfinance branches in urban areas, the needs of poor people there may be considered favorably. Growth due to financial inclusion: The world is watching eagerly the growth in Indian economy. The growth rate is increasing year after year. The Government of India is very keen on financial deepening. There is a slight decrease in population growth in India. The common people in India enter share market and start investing money. The economic grow is healthy in India now. Due to globalization, many people involve in trading activities. A rapid growth is noticed in corporate sector. The rich people in India have become more rich. The medium range people are striving hard to find place in the list of rich people. Most of the common people in India have got some arrangement for livelihood and due to grant of housing loan, many people in India are living in own house. We have to see whether there is growth of small and medium enterprises and whether they are able to withstand in tough situations. The financial deepening bothers about these issues. The needs of every citizen should be considered and fulfilled by the Government. That is the main aim of financial inclusion. Still banks are trying to accelerate the rate of deposit mobilization. The momentum in financial inclusion activities will increase only when there is a steady growth of deposit mobilization. The Government of India is concerned about triggering financial inclusion in rural areas, in particular. The development activities should be spread evenly throughout the country. The encouragement of banking habit among less privileged people should be given top priority. Financial inclusion plays a major role in driving away poverty from the country. In India, a day will come when all the Indians will have bank account and everybody will take part in financial inclusion. Article Source: http://www.saching.com About Author / Additional Info: I am a freelance writer writing articles, short stories, poems and tips for magazines and many of my works are published in magazines. I am getting appreciation from known and unknown people also. From my schooldays, I have got the passion in reading and writing. I have won many prizes while studying in school and college. I want to improve my writing talent. Hence, I wish to submit articles through this website. I get appreciation daily from many people on seeing my articles in this website. Additional Articles: * How To Use Useful Free Blogging Software ? * The Classic MALL SIGHT Today ! * Nutritional and dietary guidelines for people who are obese * Meeting etiquette * Principles of Administration Does this article violate or infringe on your copyright ? It is a violation of our terms for authors to submit content which they did not write and claim it as their own. If this article infringes on your copyrights, then use our Contact us form with the detailed proof of infringement along with the offending article's title, URL and writer name. If you do not hear back from us then contact us again in another 10 days. Thank you. Comments on this article: (0 comments so far) * Additional comments are now closed for this article *
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