FINANCIAL INCLUSION IN INDIA: CHALLENGES & OPPORTUNITIES

FINANCIAL INCLUSION IN INDIA: CHALLENGES & OPPORTUNITIES:Financial Inclusion is needed for rural and downtrodden masses that are the future growth engine of the economy. From the recent initiatives undertaken by the different world governments to foster financial inclusion, one cannot undermine the need to include the economically underprivileged in the mainstream banking sector. The role of various ICT tools and associated technologies in providing financial solutions to the unbanked is also substantial. Rural ATMs, plastic cards (like smart cards, biometric cards, etc.) and mobile payment technologies do have the ability to engage the unbanked sections. Steps have been taken by the Government for the expansion of banking services and linking of opportunities among various segments of financial sector like capital markets, insurance, etc. to achieve its aim of Inclusive Growth. High GDP growth in India, triggered by an open economy has created job opportunities in urban and semi-urban India and it will go further into rural India, increasing the potential for growth to vast sections of disadvantaged and low income groups. Commercial banks are making use of the services of non-governmental organizations (NGOs/SHGs), micro-finance institutions, NBFCs, etc. as intermediaries for providing financial and banking services which could be used as business facilitators (BF) or business correspondents (BC) by them. Government initiatives to support FI needs to be backed by progressive policies. This can be achieved only through Public- Private Partnership Model powered by ubiquitous technologies