Financial Inclusion is a powerful socio-economic concept with the objective of making financial solutions accessible to the underprivileged, who otherwise may not generally be aware or able to enjoy these services at affordable costs and at touchpoints of their choosing.
Despite higher economic growth rates recorded by India, a large section of the country’s population still remains unbanked/underbanked.
Global trends of recent times have demonstrated that in order to accomplish inclusive development and growth, the extension of financial services to all areas of society is of extreme importance. Financial Inclusion in rural as well as financially backward pockets is essential to foster financial literacy, which is a win-win opportunity for all viz. Government, Regulator, Banks/NBFCs, the underserved populace and community at large.
(An arrangement where Banks become providers of infrastructure and services, while the intermediates also known as Business Correspondents (BCs) become the executors, acting as the face of banks and financial institutions in sourcing and servicing the end-clients.)
Financial Inclusion – Its importance in India!
Financial inclusion is the opportunity to unleash the huge untapped potential of the base-of-pyramid of Indian economy.
Policy makers have largely focussed on financial inclusion of rural and semi-rural areas, mostly for reasons stated below:
The Credit gap – Access to formal and adequate credit from the formal banking channels can fuel the enterprising spirit of the masses in order to create economic output and enhance income levels at the grassroots.
The Saving habit – Low-income households have relatively fewer channels for inculcating the saving habit. This can help increase capital formation in the country and provide an economic boost.
Plug the subsidy gaps – The Government’s push for direct cash transfers to the recipient’s bank accounts instead of providing subsidies in an inefficient manner. This approach can plug the leaks in the benefit reaching the intended parties.
Ease of Access: Easy access to banking to the rural masses such as cash receipt, cash payments, remittances, balance enquiry, and account statements can be accessed through biometric or face recognition.
Reduce Cash Economy: A major initiative of the government is to curb black money in circulation and cashless transactions s.a. UPI, AEPS, Debit Cards, Wallets etc. help reduce the cash in the economy as more and more cash travels through the financial ecosystem.
It is a strong belief of the Government, Regulator and Practitioners that financial inclusion has the power to bring a revolution in economic growth and alongside, prosperity at the household level. India has been pulling all the possible gears to advance financial inclusion. The challenge lies in the uptake of the infrastructure by the unbanked population. The solution lies in spreading financial literacy and awareness about safety of these transactions and quite literally, winning the trust of people one transaction at a time.
Fincare Small Finance Bank Ltd – The biggest asset of a Bank is customer trust and long-standing relationship. The Bank has reached over 2.5 million households across India, enriching their financial progress through need-based products and services. The trust of our customers is helping us build a digital-first bank with a constantly evolving products and services portfolio.
The Digital Outlook of the Bank Since inception, the digital paradigm has been the force multiplier that has enabled Fincare Small Finance Bank to emerge as a best-in-class player in the banking space in India. At Fincare, we recognize digital as the currency that is going to radically change India’s future and of banking in particular. With a 3D approach viz. Digital, Doorstep and Delightful rates, we are confident of becoming a force to reckon and a ‘Smart Bank of choice’ in India.
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