“Role of Government in Financial Inclusion” - 4322 Words

A RESEARCH PAPER ON â€Å"ROLE OF GOVERNMENT IN FINANCIAL INCLUSION† Submitted By: Hemali Shah (MPM: 2nd Semester) ABSTRACT: 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. The Indian Government wishes that the poor people should be benefited by financial inclusion. They have†¦show more content†¦If this definition is accepted, it follows that despite the plethora of schemes that have been promoted by various governments from pre-IRDP days to the current SGSY, the SHG (Self Help Group) -Bank Linkage Programme is the only formal-sector scheme till date that regards excluded people as regular customers who can take loans again and again, as against being one-time beneficiaries who have to fall back on their own resources once their turn to benefit from the government scheme is over. 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. TheShow MoreRelatedFinancial Inclusion Through India Post1215 Words   |  5 PagesFINANCIAL INCLUSION THROUGH INDIA POST Dr. Joji Chandran PhD ABSTRACT India is having the most widely distributed post office system in the world. With 1,55,333 post offices, the India post comes under the Department of Posts which is a part of the Ministry of Communications and Information Technology under the Government of India. The wide distribution network of India post is one important factor that favours india post as a channel for financial inclusion in India. The search of financialRead MoreResearch Study On Vijaya Bank Essay1084 Words   |  5 Pagespast years for its operational areas and overall best performance. †¢ The RBI and Government are provided various schemes under financial inclusion program. †¢ As per RBI guideline every bank will offer no frill account and various service and awareness program to promote financial inclusion program. †¢ The Vijaya Bank provides various services like Business correspondent model, No frill account under financial inclusion program. †¢ The Balance sheet and profit and loss account shows that increase theRead MoreThe Growth And Poverty Improvement Of A Country Essay1539 Words   |  7 Pages INTERNSHIP INTRODUCTION Finance is assumed to be one of the most important tools for the growth and poverty improvement in a country. Financial inclusion is a vision for every country to achieve so that it can provide quality services to its citizens. Govt. Has introduces many schemes to achieve the aim of Inclusive growth and abandoned access to Financial services. Many initiatives, schemes and reforms have been put into the place after independence. Many Cooperative Banks where introduced toRead MoreThe Structure Of The Banking Industry1608 Words   |  7 Pagesthe State Bank of Vietnam (SBV) it has now expanded to several players and has recently enabled MFIs to be part of the formal financial system. However, despite these achievements, there are still challenges that linger and financial inclusion remains an issue. This part explores the current structure of the banking industry and touches on the status of financial inclusion in Vietnam. 4.3.1. Banking Industry Vietnam’s banking sector is fairly recent being founded a little over 2 decades ago. PriorRead MoreBank Of The State Of Jammu And Kashmir1251 Words   |  6 Pageshas not been able to provide financial services to the underprivileged people till this date people are excluded from financial services. Strategies should be made according to the different villages and all efforts must be put to raise the standard of people in the state of Jammu and Kashmir. Bank should make polices for common people to ensure that inclusion of poor is kept in mind. Usually loans are taken because of problems faced by people it may be of financial loan loan for marriages andRead MoreA Market Based Approach For Community Development Essay1400 Words   |  6 Pagesincludes actors from inside and outside of the community to achieve sustainability. My previous essays have addressed the progression of community development from place-based attachment, organizing and advocacy to addressing the need and effect of government involvement. The final stop on the continuum of the community development is to analyze market-based approaches to community development. This paper will look at how a market based approach to community development is an important component ofRead MoreEssay On Microfinance Sector836 Words   |  4 Pagesadequate financing; these numbers highlight the extent of financial exclusion.2 Banks seem to have taken note of these realities and are adopting new technologies and leveraging partners to tap the underserved. This has resulte d in increased financial inclusion in rural areas, especially among those who are opening bank accounts for the first time. Still, despite the best efforts of banks, many are yet to be included in the formal financial system through access to formal credit. Microfinance institutionsRead MoreDigital Payment Is A Way Of Payment1457 Words   |  6 Pagesside capabilities that support the Indian government’s agenda of financial inclusion. For instance, digital banking offers numerous advantages that work towards improving the same, largely riding on the fact that Indian consumers have shown tremendous preference for digital technologies, with growth rates for e-commerce as well as mobile phone adoption far outstripping rates in developed economies. As per Reserve Bank of India â€Å"Financial Stability Report of 2015-16† the share of electronic transactionsRead MoreRole Of Business In Nigeria795 Words   |  4 PagesChairman of Heirs Holding, Tony Elumelu, has said that the federal government’s Ease of Doing Business in Nigeria initiative can only work when the three arms of government, the executive, the judiciary and legislature, work together to put up right business policies that will prepare Nigeria as investment destination. Elumelu, stated this in a key note address at the 2017 National Insurance Conference organised by the Insurance Industry Consultative Council ( IICC) in Abuja. Speaking on the themeRead MoreGlobal Financial Development Report By The World Bank Essay2058 Words   |  9 PagesThis is the second Global Financial Development Report published by the World Bank. It seeks to contribute to enhancing the knowledge of financial inclusion around the world. In the recent times, financial inclusion has become an important aspect for economic and social development of an economy and has become a significant topic of discussion for the policy makers, market practitioners etc. Financial inclusion has been given a lot importance in our country and this can be proven by the recently