Financial Inclusion

It is the inclusion of people in the formal (institutional) financial system, so that everyone (especially weaker and marginal sections) to get access to basic financial services (money deposit, credit, insurance, pension, remittance facility etc.)

Different entities are engaged -
Financial intermediaries (act as a bridge between people needing financial services)

1. Banks
2. NBFCs

Schemes/ Programs for Financial Inclusion

PM Jan Dhan Yojana (PMJDY)

Objective : To achieve financial inclusion

Launched on : 28th Aug, 2014

Salient Features

• at least one one basic banking account for every household
• Financial Literacy
• access to credit and insurance
• account holder will get
• a RuPay debit card having in-built accident cover of 1 lakh.
• life insurance cover of 30000 to those opening account before Jan 26, 2015

Issues/ Observations

• As on 28th jan, 67.5% accounts were with zero balance
• As on 28th jan, 12.31 cr bank accounts had been opened
• Guinness world record for opening most bank accounts in the week starting 23rd aug.
• Jaitley in March : next phase of JDY will focus on mobilizing savings in order to check the declining savings rate. This will be done by progressive use of Direct Benefit Transfer (DBT), increasing financial literacy and creating universal social security cover for all citizens, especially the poor, under-privileged and workers in unorganized sector

ATMs

• Help in Financial inclusion 
• Bank ATMs
• Brown Label ATMs
• White Label ATMs

Banking Correspondence Agents/ Bank Saathi

Nachiket Mor Committee

This committee was set up by RBI in Sep, 2014 and one of the major agenda for it was Financial Inclusion. It made following recommendations in this regard