Post on 06-Apr-2018
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Mobile Technology in financial Inclusion
Financial Inclusion is the process of ensuring access to appropriate financial products and
services needed by all sections of the society in general and vulnerable groups such asweaker sections and low income groups in particular at an affordable cost in a fair and
transparent manner by mainstream institutional players.
In terms of scale, spread, costs, risks, and the inter-temporal nature of credit markets,
financial institutions and agents in India face formidable challenges in meeting the diverse
financial service needs of the countrys rural population. The banking system has grown
enormously in the last five years keeping pace with and in some cases leading the countrys
remarkable economic growth. Simultaneously, the banking system has improved its
strength, efficiency and resilience. There have also been significant improvements in thepayments and settlements system and electronic payments. At the same time, large number
of households continues to be excluded from the formal banking system and as per some
recent surveys their share has increased.
For financial inclusion to be a sustainable model, government agencies, banks, micro
financial institutions, and insurance companies and intermediaries are required to be given
support and motivation by the government. The problem of exclusion can be tackled by
banks and other organizations by recognizing that poor are bankable too unlike the current
terminals of big size defaults of from mortgage and credit cards business.
The present rural financial infrastructure comprises a wide variety of formal, semi-formal
and informal financial service providers, with distinctive cultures and characteristics. The
number of organisations and agents is very substantial : 33,553 rural and semi-urban
branches of commercial banks, 13,932 rural and semi-urban branches of Regional Rural
Banks, 1.09 lakh primary cooperatives, 1,000 NGO-MFIs and around 20 MFIs registered as
companies (Section 25) and nearly three million SHGs.
As per the 2008 Report on Financial Inclusion by Dr. C. Rangarajan, over 73 percent of
farmer households currently do not have access to formal sources of credit. The Committeealso suggested a National Rural Financial Inclusion Plan (NRFIP) to be launched with a clear
target to provide access to comprehensive financial services, including credit, to at least
50% of financially excluded households, say 55.77 million by 2012 through rural/semi-urban
branches of Commercial Banks and Regional Rural Banks. The remaining households, with
such shifts as may occur in the rural/urban population, have to be covered by 2015. Semi-
urban and rural branches of commercial banks and RRBs may set for themselves a minimum
target of covering 250 new cultivator and non-cultivator households per branch per annum,
with an emphasis on financing marginal farmers and poor non-cultivator households.
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The aim of the project is to:
Study the performance of nationalized banks on Financial Inclusion
1. Study the achievements of targets of financial inclusion as set by the RangarajanCommittee. Identify the success of banks. Also, Case studies.
2. Study the measures taken by various nationalized bank to improve financial literacy3. Study and compare the Product portfolio offered by various nationalized bank4. Identify the potential of business opportunity for banks in financial inclusion
Manish Kumar
(10927873)