A Theoretical Understanding of Financial Inclusion in India

Even after more than 65 years of Independence, a majority of the country’s population still do not have a bank account. As a result, this caused financial instability and pauperism among the lower income group who do not have access to financial products and services. In order to achieve inclusive development and growth, the expansion of financial services to all sections of society is the sine qua non of any open and efficient society and Financial Inclusion is one such step in this direction. Financial Inclusion is a relatively new socio-economic concept in India that aims to provide delivery of financial services at affordable costs to vast sections of disadvantaged and low income groups. Availability of banking and payment services to the entire population without discrimination is the prime objective of the idea.