Globally economies are constantly evolving. India’s economy is also evolving. As the saying goes that change is the only constant, the question on everyone’s mind is what next after bringing commercially viable but financially excluded person into formal financing channel ? Future of Financial Inclusion in India Commercially Unviable Urban Financial Inclusion: This seems to be […]
In order to achieve inclusive development and growth , the expansion of financial services to all sections of society (financial inclusion) is important as global trends have shown. Financial exclusion results in widespread inequality in incomes and earning opportunities. Countries with low levels of income inequality tend to have lower levels of financial inclusion, while high […]
Currently, India ranks 2nd in the world in terms of financially excluded households after China.But this position is in absolute numbers. The situation is not so bad in percentage terms. In percentage terms the majority of the African countries are behind India. India’s regulator started focusing on financial inclusion only in last five years. That way, […]
Intermediaries for achieving financial inclusion can be broadly sub divided into two categories: 1. Regulatory approved category of intermediaries 2. Other intermediaries. Till date, the following have been allowed to act as intermediaries by the regulatory authorities; Financial Inclusion Intermediaries in India • Business correspondents • Section 25 companies registered under companies act,1956 • Non-govenmental […]
Dharavi in Mumbai, India is the largest slum colony in Asia. Most of Dharavi residents are migrants either working in factories and eateries or involved in self employed activities. Initially, officials of ‘Indian bank ‘and volunteers contacted the residents of Dharavi at their residence and encouraged them to open bank accounts under simplified KYC norms […]
Prior to 2008, public sector banks in India were considered as conservative, sluggish and weak. But this perception changed dramatically after global financial meltdown. The Indian banking system has proved its mettle. The hidden robustness of the banking system came to the fore and became known to whole world. But of what use is this […]
In the context of Financial Inclusion, it is important to understand certain aspects of Economic Theory. Economists of the world describe that there are at least five different types of capital or resources in a country : Physical (roads, building, plant and machinery, infrastructure) Natural (land, water, forests, livestock, weather) Human (nutrition, health, education, skills, […]
The Indian growth story started unfolding with the IT Sector in late 90′s. For the first time, global corporates realized the importance of Indian IT because of the Y2K phenomenon. Since then the Indian Economy has been going from strength to strength.Today India is the second fastest growing economy in the world. The crossing of […]