Financial Inclusion essay for Class 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12. Find paragraph, long and short essay on Financial Inclusion for Students.
Financial Inclusion Meaning
Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of disadvantaged and low income segment. It includes provision of basic banking, credit, investment and insurance services all the sections of society.
Financial Inclusion Essay Sample Examples
Financial Inclusion Essay 400 Words
The banking industry has shown tremendous growth in volume and complexity during the last few decades. Despite making significant improvements in all the areas relating to financial viability, profitability and competitiveness, there are concerns that banks have not been able to include the vast segment of the population, especially the underprivileged sections of the society, into the fold of basic banking services.
Consequences of financial exclusion will vary depending on the nature and extent of services denied. It may lead to increased travel requirements, higher incidence of crime, a general decline in investment, entrapment in Ponzi schemes, MLM, Saradha Chit Fund etc., difficulties in gaining access to credit or getting credit from informal sources at exorbitant rates, handling unforeseen circumstances and increased unemployment, etc.
Bank nationalization in India marked a paradigm shift in the focus of banking as it was intended to shift the focus from class banking to mass banking. The rationale for creating Regional Rural Banks was also to take the banking services to poor people. Some other steps include opening of no-frills accounts, relaxation on know-your-customer ( KYC) norms, engaging business correspondents (BCs), adoption of EBT & DBT, opening of branches in unbanked rural centres etc.
CRISIL, India’s leading credit rating and research company launched Financial Inclusion Index – to measure the status of financial inclusion in India. The all India CRISIL Inclusix score of 40.1 is low, though there are clear signs of progress.
It is absolutely beyond any doubt that the financial access to masses has significantly improved in the last three and a half decades. But the basic question is, has that been good enough. It is becoming increasingly apparent that addressing financial exclusion will require a holistic approach on the part of the banks in creating awareness about financial products, education, and advice on money management, debt counselling, savings and affordable credit. Banks need to redesign their business strategies to incorporate specific plans to promote financial inclusion of low-income group treating it both a business opportunity as well as a corporate social responsibility.
