Financial Inclusion as a Goal For Development

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 1/24

DEVELOPMENT THEORY & EXPERIENCE

PROJECT REPORT

FOR YEAR 2012-13

 Title

‘ Financial Inclusion’ As a Goal for 

 Development-

‘ A Case for India’ 

 Submitted by:

Roll No. Student’s Name

1 ATIN GUPTA

8 MANIK BATRA

36 PRIYESH JAIN

301 SIDDHARTH LAKHANPAL

369 VIKRAM CHHABRA

ACKNOWLEDGEMENT

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 2/24

We would like to express our gratitude to all those who gave us the opportunity to complete this

 project. Firstly, we would like to thank, The Department of Economics, amjas !ollege, "ew

 Delhi for giving us the permission to commence this project under its am#it, to do the necessary

research work and to use the departmental data.

We would furthermore like to thank Dr.$ihir %andey, our supervisor who gave us permission

and encouraged us to go ahead with our project. We are deeply inde#ted for his help, stimulating 

 suggestions and encouragement all the time during research and completion of this project.

 &ast, #ut not the least, we would like to thank our colleagues who provided us with creative ideas

and suggestions during the course of the project.

 Date ' (nd  )pril *+(

!ollege' amjas !ollege

 %lace' -niversity of Delhi, Delhi

Summary

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 3/24

The fi!"i!# $e"%&' i$ "'("i!# %& !) e"&&*)+i% !ffe"%$ %he ,($ie$$ "#i*!%e- i.e$%*e%

"#i*!%e- !/ e"&&*i" '&%h2 e##4f("%i&i fi!"i!# $)$%e*$ !'e &% &#) "'i%i"!# f&' 

$($%!ii hih e"&&*i" '&%h 5!%h$+*&,i#ii $!.i$ f'&* %he 5(,#i" !/ !##&"!%i %he*

%& 5'&/("%i.e i.e$%*e%$+,(% "! !#$& 5#!) ! 5i.&%!# '&#e i *!7i '&%h *&'e i"#($i.e-

!##&i *&'e 5e&5#e %& "&%'i,(%e %& '&%h !/ $h!'e i %he ,eefi%$- !/ 5'&.i/i !""e$$ %&

fi!"e f&' !##- hi"h i %(' i$ !$$&"i!%e/ i%h *&'e '!5i/ '&%h- &, "'e!%i&- ,e%%e' i"&*e

/i$%'i,(%i&- !/ 5&.e'%) 'e/("%i&2

A""e$$ %& fi!"i!# $e'.i"e$ .!'ie$ $h!'5#) !'&(/ %he &'#/2 I *!) /e.e#&5i "&(%'ie$- #e$$

%h! h!#f %he 5&5(#!%i& h!$ ! !""&(% i%h ! fi!"i!# i$%i%(%i&- !/ i *&$% &f Af'i"! #e$$

%h! &e i fi.e h&($eh&#/$ /&2 Re"e% /e.e#&5*e% %he&') $ee$ %he #!"7 &f !""e$$ %& fi!"e !$ !

"'i%i"!# *e"h!i$* f&' ee'!%i 5e'$i$%e% i"&*e ie(!#i%)- !$ e## !$ $#&e' '&%h2

i%h&(% i"#($i.e fi!"i!# $)$%e*$- 5&&' i/i.i/(!#$ !/ $*!## e%e'5'i$e$ ee/ %& 'e#) & %hei' 

& #i*i%e/ $!.i$ !/ e!'i$ %& i.e$% i %hei' e/("!%i&- ,e"&*e e%'e5'ee('$- &' %!7e

!/.!%!e &f 5'&*i$i '&%h &55&'%(i%ie$2 :i!"i!# $e"%&' 5&#i"ie$ %h!% e"&('!e

"&*5e%i%i&- 5'&.i/e %he 'ih% i"e%i.e$ %& i/i.i/(!#$- !/ he#5 &.e'"&*e !""e$$ ,!''ie'$ !'e

%h($ "e%'!# &% &#) %& $%!,i#i%) ,(% !#$& %& '&%h- 5&.e'%) 'e/("%i&- !/ *&'e e(i%!,#e

/i$%'i,(%i& &f 'e$&('"e$ !/ "!5!"i%ie$2

  Thi$ "!($!#i%) ,e%ee e"&&*i" '&%h- fi!"i!# /ee5ei !/ fi!"i!# i"#($i& h!$ ,ee

e## 'e"&ie/ i I/i!;$ /e.e#&5*e% $%'!%e)- 5!'%i"(#!'#) $i"e %he 'ef&'*$ f'&* %he e!'#)

1990$2 The eff&'%$ !% i"#($i& !'e (/e'%!7e ,) ! (*,e' &f !e"ie$< %he fe/e'!# !/ $%!%e

&.e'*e%$- %he Ce%'!# B!7 =RBI> !/ i%$ !'*$ #i7e %he N!%i&!# B!7 f&' R('!#

De.e#&5*e%- &%he' fi!"i!# i$%i%(%i&$- NG?$- *!'7e% Re(#!%&') Ae"ie$ !$ e## !$ *!'7e%

i%e'*e/i!'ie$2 A f'e$h !.e &f %hi7i h!$ ($% ,ee (#e!$he/4%h!% %he ee/ f&' #&&7i !%

fi!"i!# i"#($i& !$ e*5&e'*e% &f %he 5e&5#e4 f'&* ($% e%%i "'e/i% %& *!7e %he* "'e/i%

&'%h) %h'&(h e@5!/i $($%!ie/ !""e$$ %& fi!"i!# $e'.i"e$2

Thi$ $%(/) $ee7$ %& fi/ %he #i7 ,e%ee fi!"i!# i"#($i& !/ /e.e#&5*e% &,e"%i.e iee'!# !/ !#$& #&&7 (5& .!'i&($ 5&#i") *e!$('e$ %h!% h!.e ,ee (/e'%!7e i I/i! %&

!"hie.e 'e!%e' fi!"i!# !""e$$ f&' i%$ "i%ie$2

Table of ContentsI. Introduction............................................................................................................. 1

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 4/24

a) What is Financial Inclusion?...............................................................................1

b) Role of Financial Inclusion in Development.......................................................2

c) Barriers to Financial services in Developing countries......................................

II. Financial Inclusion and development! "heoretical #bservations............................$

III. %olic& Response to Financial '(clusion *ountr& '(periences..............................+

a) ,oluntar& *harters and *odes of %ractice.........................................................-

b) egislation........................................................................................................./

I,. Financial Inclusion in India.....................................................................................0

,. the Road ahead for India! Issues and *hallenges.................................................1+

,I. *onclusion........................................................................................................... 1/

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 5/24

 I. Introdut!on

a)What is Financial Inclusion?A World Ban   'e5&'% $%!%e$- :i!"i!# i"#($i&- &' ,'&!/ !""e$$ %& fi!"i!# $e'.i"e$- i$

/efie/ !$ %he !,$e"e &f 5'i"e &' &45'i"e ,!''ie'$ i %he ($e &f fi!"i!# $e'.i"e$2; The 'e5&'%

$%'e$$e$ %he /i$%i"%i& ,e%ee !""e$$ %&; !/ ($e &f; fi!"i!# $e'.i"e$ !$ i% h!$ i*5#i"!%i&$

f&' P&#i") *!7e'$2 A""e$$; e$$e%i!##) 'efe'$ %& %he $(55#) &f $e'.i"e$- he'e!$ ($e i$

/e%e'*ie/ ,) /e*!/ !$ e## !$ $(55#)2 A*& %he &4($e'$ &f f&'*!# fi!"i!# $e'.i"e$ !

"#e!' /i$%i"%i& ee/$ %& ,e *!/e ,e%ee .&#(%!') !/ i.&#(%!') e@"#($i&2 The 5'&,#e* &f 

fi!"i!# i"#($i& !//'e$$e$ %he i.&#(%!'i#) e@"#(/e/; !$ %he) !'e %he &e$ h&- /e$5i%e

ee/i fi!"i!# $e'.i"e$- /& &% h!.e !""e$$ %& %he*2 NABARD0092  Financial nclusion / 

an overview

M!CR"L’s #ers#e$t%&e on '%nan$%al %n$lus%on =#ased on its experience of the rating of $Fs> i$

%h!% fi!"i!# i"#($i& i$ &% ($% ! *!%%e' &f 5'&.i/i .!'i&($ fi!"i!# 5'&/("%$ !/ $e'.i"e$

=/e$"'i,e/ i %he !,&.e /efii%i&$> %& %he e@"#(/e/ 5&5(#!%i& ,(% doing so in a responsi#le

manner 2 Bei 'e$5&$i,#e e%!i#$ 5'&.i/i fi!"i!# $e'.i"e$ ,!$e/ & %he $i@ 5'i"i5#e$ &f 

"#ie% 5'&%e"%i& !0)%1)!!2"' !ampaign for !lient %rotection =i> 5'e.e% &.e'4

i/e,%e/e$$- =ii> %'!$5!'e% 5'i"i- =iii> !55'&5'i!%e "&##e"%i& 5'!"%i"e$- =i.> e%hi"!# $%!ff 

 ,eh!.i&('- =.> *e"h!i$* f&' "#ie% 5'&%e"%i& !/ =.i> 5'i.!") &f "#ie% /!%!2

A$$ord%n( to t)e *n%ted Nat%ons t)e ma%n (oals o' "n$lus%&e +%nan$e are<

12 A""e$$ !% ! 'e!$&!,#e "&$% &f !## h&($eh&#/$ !/ e%e'5'i$e$ %& %he '!e &f fi!"i!# $e'.i"e$

&' hi"h %he) !'e ,!7!,#e;- i"#(/i $!.i$- $h&'% !/ #&4%e'* "'e/i%- #e!$i !/

f!"%&'i- *&'%!e$- i$('!"e- 5e$i&$- 5!)*e%$- #&"!# *&e) %'!$fe'$ !/ i%e'!%i&!#

'e*i%%!"e$2

2 S&(/ i$%i%(%i&$- (i/e/ ,) !55'&5'i!%e i%e'!# *!!e*e% $)$%e*$- i/($%') 5e'f&'*!"e

$%!/!'/$- !/ 5e'f&'*!"e *&i%&'i ,) %he *!'7e%- !$ e## !$ ,) $&(/ 5'(/e%i!# 'e(#!%i&

he'e 'e(i'e/2

32 :i!"i!# !/ i$%i%(%i&!# $($%!i!,i#i%) !$ ! *e!$ &f 5'&.i/i !""e$$ %& fi!"i!# $e'.i"e$

&.e' %i*e2

1

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 6/24

F2 M(#%i5#e 5'&.i/e'$ &f fi!"i!# $e'.i"e$- he'e.e' fe!$i,#e- $& !$ %& ,'i "&$%4effe"%i.e !/ !

i/e .!'ie%) &f !#%e'!%i.e$ %& "($%&*e'$ =hi"h "&(#/ i"#(/e !) (*,e' &f "&*,i!%i&$

&f $&(/ 5'i.!%e- &45'&fi% !/ 5(,#i" 5'&.i/e'$2 >

I I/i!- Ran(ra,an Comm%ttee on +%nan$%al "n$lus%on -//01 $%!%e/ i i%$ 'e5&'%- :i!"i!#

i"#($i& *!) ,e /efie/ !$ %he 5'&"e$$ &f e$('i !""e$$ %& fi!"i!# $e'.i"e$ !/ %i*e#)

!/ !/e(!%e "'e/i% he'e ee/e/ ,) .(#e'!,#e '&(5$ $("h !$ e!7e' $e"%i&$ !/ #& i"&*e

'&(5$ !% ! !ff&'/!,#e "&$%2 Si*i#!'#) Ra()uram Ra,an Comm%ttee’s /efii%i& &f :i!"i!#

I"#($i& $%!%e$ %h!% 2:i!"i!# i"#($i&- 'efe'$ %& (i.e'$!# !""e$$ %& ! i/e '!e &f fi!"i!#

$e'.i"e$ !% ! 'e!$&!,#e "&$%2 The$e i"#(/e &% &#) ,!7i 5'&/("%$ ,(% !#$& &%he' fi!"i!#

$e'.i"e$ $("h !$ i$('!"e !/ e(i%) 5'&/("%$2

b)Role of Financial Inclusion in Develo!ent 

The "&$e$($ i$ %h!% fi!"e 5'&*&%e$ e"&&*i" '&%h ,(% %he *!i%(/e &f i*5!"% /iffe'$2

:i!"i!# i"#($i& i$ i%e/e/ %& "&e"% 5e&5#e %& ,!7$ i%h "&$e(e%i!# ,eefi%$2 E$('i

%h!% %he fi!"i!# $)$%e* 5#!)$ i%$ /(e '&#e i 5'&*&%i i"#($i.e '&%h i$ &e &f %he ,ie$%

"h!##ee$ f!"i %he e*e'i e"&&*ie$2 e %he'ef&'e !/.&"!%e %h!% fi!"i!# /e.e#&5*e%

"'e!%e$ e!,#i "&/i%i&$ f&' '&%h he !""e$$ %& $!fe- e!$) !/ !ff&'/!,#e "'e/i% !/ &%he' 

fi!"i!# $e'.i"e$ ,) %he 5&&' !/ .(#e'!,#e '&(5$- /i$!/.!%!e/ !'e!$ !/ #!i $e"%&'$ i$

'e"&ie/ !$ ! 5'e4"&/i%i& f&' !""e#e'!%i '&%h !/ 'e/("i i"&*e /i$5!'i%ie$ !/

 5&.e'%)2 A""e$$ %& ! e##4f("%i&i fi!"i!# $)$%e*- ,) "'e!%i e(!# &55&'%(i%ie$- e!,#e$

e"&&*i"!##) !/ $&"i!##) e@"#(/e/ 5e&5#e %& i%e'!%e ,e%%e' i%& %he e"&&*) !/ !"%i.e#)

"&%'i,(%e %& /e.e#&5*e% !/ 5'&%e"%$ %he*$e#.e$ !!i$% e"&&*i" $h&"7$2

I% h!$ ,ee #& 'e"&ie/ %h!% e##4f("%i&i fi!"i!# $)$%e*$ !'e e$$e%i!# f&' e"&&*i"

/e.e#&5*e%2 The fi!"i!# $e"%&' !'&(/ %he &'#/ h!$- &.e' %he )e!'$- e*5h!$ie/ %he

i*5&'%!"e &f fi!"i!# $%!,i#i%) !/ effi"ie")2 P'&*&%i ,'&!/e' !""e$$ %& fi!"i!# $e'.i"e$-

h&e.e'- h!$ 'e"ei.e/ *("h #e$$ !%%e%i& /e$5i%e %he e*5h!$i$ i% h!$ 'e"ei.e/ i %he&')2

E*5i'i"!# e.i/e"e %h!% #i7$ !""e$$ %& fi!"i!# $e'.i"e$ %& /e.e#&5*e% &(%"&*e$ h!$ ,ee

(i%e #i*i%e/- 5'&.i/i !% ,e$% %e%!%i.e (i/!"e f&' 5(,#i" 5&#i") ii%i!%i.e$2 The i"'e!$i

2

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 7/24

e*5h!$i$ ,) 5&#i") "i'"#e$ i 'e"e% )e!'$ & ,(i#/i *&'e i"#($i.e fi!"i!# $)$%e*$ %h($

hih#ih%$ %he ee/ f&' ,e%%e' /!%! !/ !!#)$i$2

c) "a##ie#s to Financial se#vices in Develoin$ count#ies

I/e%if)i %he ,!''ie'$ %h!% 5'e.e% $*!## fi'*$ !/ 5&&' h&($eh&#/$ i /e.e#&5i "&(%'ie$

f'&* ($i fi!"i!# $e'.i"e$ &% &#) he#5$ 'e$e!'"he'$ (/e'$%!/ %he 'e!$&$ f&' fi!"i!#

e@"#($i& ,(% !#$& 5'&.i/e$ hi%$ !$ %& hi"h 5&#i"ie$ "&(#/ ,e he#5f(# i 'e*&.i %he$e

 ,!''ie'$ !/ ,'&!/ei !""e$$2

 ?e *!&' "&$%'!i% i$ (eo(ra#)y- &' 5h)$i"!# !""e$$2 hi#e $&*e fi!"i!# i$%i%(%i&$

!##& "#ie%$ %& !""e$$ $e'.i"e$ &.e' %he 5h&e &' .i! %he I%e'e%- $&*e 'e(i'e "#ie%$ %&

.i$i% ! ,'!"h &' ($e ! !(%&*!%e/ %e##e' *!"hie =ATM>2 hi#e ! i/e!# *e!$('e &(#/i/i"!%e %he !.e'!e /i$%!"e f'&* h&($eh&#/ %& ,'!"h =&' ATM>- %he /e$i%) &f ,'!"he$ 5e' 

$(!'e 7i#&*e%e'- &' 5e' "!5i%!- 5'&.i/e$ ! ii%i!#- !#,ei% "'(/e- i/i"!%&'2 :&' e@!*5#e- S5!i

h!$ 96 ,'!"he$ 5e' 100-000 5e&5#e !/ 90 ,'!"he$ 5e' 10-000 $(!'e 7i#&*e%e'$- hi#e

E%hi&5i! h!$ #e$$ %h! 1 ,'!"h 5e' 100-000 5e&5#e !/ B&%$!! h!$ 1 ,'!"h 5e' 10-000

$(!'e 7i#&*e%e'$2 A&%he' ,!''ie' i$ %he la$ o' #ro#er do$umentat%on2 :i!"i!#

i$%i%(%i&$ ($(!##) 'e(i'e &e &' *&'e /&"(*e%$ f&' i/e%ifi"!%i& 5('5&$e$- ,(% i *!)

#&4i"&*e "&(%'ie$- *&$% 5e&5#e+e$5e"i!##) %h&$e &% e*5#&)e/ i %he f&'*!# $e"%&' =h&

!'e ($(!##) 5&&'>+#!"7 $("h 5!5e'$2 :i!##)- *!) i$%i%(%i&$ h!.e m%n%mum a$$ount!

3alan$e re4u%rements &' fee$ %h!% !'e &(% &f %he 'e!"h &f *!) 5&%e%i!# ($e'$2 :&' e@!*5#e-

i% i$ &% (($(!# f&' ,!7$ %& 'e(i'e ! 5e'$& &5ei ! "he"7i !""&(% %& *!7e !

*ii*(* /e5&$i% e(i.!#e% %& 0 5e'"e% &f %h!% "&(%');$ 5e' "!5i%! '&$$ /&*e$%i" 5'&/("%

=GDP>2 E@5!/i !""e$$ %& fi!"i!# $e'.i"e$ 'e*!i$ ! i*5&'%!% 5&#i") "h!##ee i

*!) "&(%'ie$- i%h *("h f&' &.e'*e%$ %& /&2 H&e.e'- &% !## &.e'*e% !"%i& i$

e(!##) effe"%i.e- !/ $&*e 5&#i"ie$ "! ,e "&(%e'5'&/("%i.e2 P&#i") *!7e'$ ee/ %& h!.e

'e!#i$%i" &!#$2 :&' i$%!"e- hi#e !""e$$ %& f&'*!# 5!)*e% !/ $!.i$ $e'.i"e$ "!

!55'&!"h (i.e'$!#i%) !$ e"&&*ie$ /e.e#&5- &% e.e')&e i## &' $h&(#/ (!#if) f&' "'e/i%2

The'e !'e i$%!"e$ he'e !%i&!# e#f!'e h!$ ,ee 'e/("e/ ,) &.e'#) 'e#!@e/ "'e/i%

 5&#i"ie$2

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 8/24

 Ne@% e;## /i$"($$ 'e#!%i&$hi5 ,e%ee fi!"i!# i"#($i& !/ /e.e#&5*e% !/ e.i/e"e

f'&* /iffe'e"e "&(%'ie$2 :&##&i %h!% e;## $ee $%!%e &f :i!"i!# I"#($i& i I/i! !/

.!'i&($ i$$(e$ "h!##ee$ f&' %he f(%('e2 e $(* (5 ,) i.i "&"#(/i &,$e'.!%i&$2

 II. "!nan!al Inlus!on and de#elo$%ent

T'eoret!al Obser#at!ons

M&/e' /e.e#&5*e% %he&') $%(/ie$ %he e.&#(%i& &f '&%h- 'e#!%i.e i"&*e ie(!#i%ie$- !/

%hei' 5e'$i$%e"e i (ifie/ *&/e#$2 I *!) &f %he$e *&/e#$- fi!"i!# *!'7e% i*5e'fe"%i&$ 5#!)

! "e%'!# '&#e- if#(e"i 7e) /e"i$i&$ 'e!'/i h(*! !/ 5h)$i"!# "!5i%!# !""(*(#!%i& !/

&""(5!%i&!# "h&i"e$2 :&' e@!*5#e- i %he&'ie$ $%'e$$i "!5i%!# !""(*(#!%i&- fi!"i!# *!'7e%

i*5e'fe"%i&$ /e%e'*ie %he e@%e% %& hi"h %he 5&&' "! ,&''& %& i.e$% i $"h&&#i &' 

 5h)$i"!# "!5i%!#2 Th($- %he e.&#(%i& &f fi!"i!# /e.e#&5*e%- '&%h- !/ i%e'ee'!%i&!#

i"&*e /)!*i"$ !'e "#&$e#) i%e'%ie/2 :i!"e if#(e"e$ &% &#) %he effi"ie") &f 'e$&('"e

!##&"!%i& %h'&(h&(% %he e"&&*) ,(% !#$& %he "&*5!'!%i.e e"&&*i" &55&'%(i%ie$ &f 

i/i.i/(!#$ f'&* 'e#!%i.e#) 'i"h &' 5&&' h&($eh&#/$2

Thi$ "'("i!# f&"($ & %he fi!"i!# $e"%&' i e"&&*i" *&/e#i h!$ ,ee $%'e%hee/ i%h %he

hi$%&'i"!# /e.e#&5*e% &f .ie$ & %he #i7$ ,e%ee e"&&*i" '&%h !/ i"&*e ie(!#i%)2 I%

!$ #& ,e#ie.e/ %h!% %he e!'#) $%!e$ &f e"&&*i" /e.e#&5*e% &(#/ ie.i%!,#) ,e

!""&*5!ie/ ,) ie(!#i%) !/ "&"e%'!%i&$ &f e!#%h2 P&i%i %& %he f!"% %h!% 'i"h 5e&5#e;$

*!'i!# 5'&5e$i%) %& $!.e i$ hihe' %h! %h!% &f %he 5&&' %he&'e%i"i!$ !'(e/ %h!% %he ee/ %&

fi!"e #!'e- i/i.i$i,#e i.e$%*e% 5'&e"%$ i %he 5'&"e$$ &f /e.e#&5*e% i*5#ie/ %h!% '!5i/

'&%h &(#/ ee/ e!#%h "&"e%'!%i&- #e!/i %& ! f(/!*e%!# %'!/e4&ff ,e%ee '&%h !/

$&"i!# ($%i"e2 M&'e ee'!##)- K(e%$ =19- 1963> 'e!$&e/ %h!% %hi$ %'!/e4&ff *e!% %h!%

ie(!#i%) &(#/ i"'e!$e i %he e!'#) $%!e$ &f /e.e#&5*e% (%i# %he ,eefi%$ &f '&%h $5'e!/

%h'&(h&(% %he e"&&*)2 S&*e &f %he e!'#ie' e*5i'i"!# e.i/e"e f'&* %he Ui%e/ S%!%e$ !/ &%he' 

/e.e#&5e/ "&(%'ie$ $(55&'%e/ %he K(e%$ h)5&%he$i$2 B(% e.i/e"e f'&* /e.e#&5i "&(%'ie$

!$ &% $& $(55&'%i.e2

$

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 9/24

The i*5&'%!"e &f 5'&.i/i i"e%i.e$ %& 'e!'/ %he 5'&/("%i.e effi"ie") &f e%e'5'i$e !/

i.e$%*e% *ih% $ee* %& i*5#) %h!% '&%h !/ ie(!#i%) *($% ,e 5&$i%i.e#) #i7e/- ,(%

e*5i'i"!# $%(/ie$ $(e$% %h!% %hi$ i$ &% !#!)$ $&2 I 5!'%i"(#!'- hi#e .e') #& ie(!#i%) i$

i/ee/ e*5i'i"!##) !$$&"i!%e/ i%h '!5i/ $(,$e(e% '&%h- %he hihe$% '!%e$ &f '&%h !'e

!$$&"i!%e/ i%h *&/e'!%e ie(!#i%)2 :('%he'*&'e- hih #e.e#$ &f ie(!#i%) $ee* %& 'e/("e

$(,$e(e% '&%h2

He#5i %& e@5#!i %he$e fi/i$- *&'e $(,%#e %he&'ie$ h!.e e@5#&'e/ 5'e"i$e *e"h!i$*$

he'e,) ie(!#i%) *ih% !/.e'$e#) !ffe"% '&%h2 :i!"i!# *!'7e% i*5e'fe"%i&$ !'e &f%e !%

%he "&'e &f %hi$ #ie &f %h&(h% ,e"!($e ie(!#i%ie$ 5e'$i$% ,e"!($e &f %he$e i*5e'fe"%i&$2 :&' 

e@!*5#e- i %he *&/e# &f G!#&' !/ ei'! =1993>- i% i$ ,e"!($e &f fi!"i!# *!'7e% f'i"%i&$ %h!%

 5&&' 5e&5#e "!&% i.e$% i %hei' e/("!%i& /e$5i%e %hei' hih *!'i!# 5'&/("%i.i%) &f 

i.e$%*e%2 I B!e'ee !/ Ne*!;$ *&/e# =1993>- i/i.i/(!#$; &""(5!%i&!# "h&i"e$ !'e

#i*i%e/ ,) %hei' ii%i!# e/&*e%$2 The $%'("%('e &f &""(5!%i&!# "h&i"e$+he%he' 5e&5#e "!

 ,e"&*e e%'e5'ee('$ &' h!.e %& 'e*!i !e e!'e'$+i %(' /e%e'*ie$ h& *("h %he) "!

$!.e !/ h!% 'i$7$ %he) "! ,e!'- i%h #&4'( i*5#i"!%i&$ f&' '&%h !/ i"&*e

/i$%'i,(%i&2 He"e- %he$e *&/e#$ $h& %h!% #!"7 &f !""e$$ %& fi!"e "! ,e %he "'i%i"!#

*e"h!i$* f&' ee'!%i 5e'$i$%e% i"&*e ie(!#i%) &' 5&.e'%) %'!5$- !$ e## !$ #&e' '&%h2

?e i*5#i"!%i& &f %he$e *&/e' /e.e#&5*e% %he&'ie$ i$ %h!% 'e/i$%'i,(%i& &f e!#%h "! f&$%e' 

'&%h2 I/ee/- %hi$ h!$ ,ee %he *!i 5&#i") "&"#($i& /'! ,) *!) 'e!/e'$ &f %he$e

%he&'ie$2 Thi$ %hi7i '!%i&!#ie$ ! f&"($ & 'e/i$%'i,(%i.e 5(,#i" 5&#i"ie$ $("h !$ #!/ &' 

e/("!%i& 'ef&'*2 Re$e!'"he'$ %!7e "!5i%!# *!'7e% i*5e'fe"%i&$ !$ i.e !/ $(e$% /iffe'e%

'e/i$%'i,(%i.e 5&#i"ie$ %& 5'&*&%e '&%h- f&"($i & $"h&&#i- $!.i- &' fe'%i#i%) "h!e$2

A *&'e effe"%i.e !/ $($%!i!,#e /e.e#&5*e% !55'&!"h &(#/ /i'e"%#) !//'e$$ fi!"i!# *!'7e%

i*5e'fe"%i&$- i%h&(% "!($i !/.e'$e i"e%i.e effe"%$2 M&$% 'e/i$%'i,(%i.e 5&#i"ie$ "'e!%e

/i$i"e%i.e$ %& &'7 !/ $!.e- !#%h&(h %he e"&&*i" *!i%(/e$ &f %he$e /i$i"e%i.e effe"%$!'e ! $(,e"% &f i%e$e /e,!%e =Ahi& !/ B&#%& 199>2 A$ De*i'O4K(% !/ Le.ie =00>

!'(e- %he$e %e$i&$ .!i$h he f&"($i & fi!"i!# $e"%&' 'ef&'*$2 Re/("i fi!"i!#

*!'7e% i*5e'fe"%i&$ %& e@5!/ i/i.i/(!# &55&'%(i%ie$ "'e!%e$ 5&$i%i.e- &% e!%i.e- i"e%i.e

effe"%$2

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 10/24

E@%e$i.e e*5i'i"!# e.i/e"e $(e$%$ ! $iifi"!% !/ '&,($% 'e#!%i&$hi5 ,e%ee fi!"i!#

/e5%h !/ '&%h2 M&'e 'e"e% *i"'& e.i/e"e ($i fi'*4#e.e# /!%! $e%$ $(e$%$ %h!% ,e%%e'4

/e.e#&5e/ fi!"i!# $)$%e*$ e!$e fi!"i!# "&$%'!i%$ f!"i fi'*$2 Thi$ fi/i i##(*i!%e$ &e

*e"h!i$* %h'&(h hi"h fi!"i!# /e.e#&5*e% if#(e"e$ e"&&*i" '&%h2 :('%he'*&'e-

'e$e!'"he'$ 'e"e%#) h!.e $h& %h!% fi!"i!# /e5%h 'e/("e$ i"&*e ie(!#i%) !/ 5&.e'%) !/

i$ %h($ 5!'%i"(#!'#) ,eefi"i!# f&' %he 5&&'2

:i!"i!# /e5%h &' /e.e#&5*e% *&'e ee'!##)- "! h!.e /i'e"% !/ i/i'e"% effe"%$ & $*!##

fi'*$ !/ 5&&' h&($eh&#/$2 G'e!%e' /e5%h i$ #i7e#) %& ,e !$$&"i!%e/ i%h 'e!%e' !""e$$ f&' ,&%h

fi'*$ !/ h&($eh&#/$- hi"h i## *!7e %he* ,e%%e' !,#e %& %!7e !/.!%!e &f i.e$%*e%

&55&'%(i%ie$- $*&&%h %hei' "&$(*5%i&- !/ i$('e %he*$e#.e$2 H&e.e'- e.e if fi!"i!#

/e.e#&5*e% /&e$ &% i*5'&.e /i'e"% !""e$$ f&' $*!## fi'*$ &' 5&&' h&($eh&#/$- i%$ i/i'e"%

effe"%$ *!) !#$& ,e $iifi"!%2

:&' e@!*5#e- %he 5&&' *!) ,eefi% f'&* h!.i &,$ !/ hihe' !e$- !$ ,e%%e'4/e.e#&5e/

fi!"i!# $)$%e*$ i*5'&.e %he effi"ie") &f 5'&/("% !/ #!,&(' *!'7e%$ !/ 5'&*&%e '&%h2

Si*i#!'#)- $*!## fi'*$ *!) $ee %hei' ,($ie$$ &55&'%(i%ie$ e@5!/ i%h fi!"i!# /e.e#&5*e%-

e.e if %he fi!"i!# $e"%&' $%i## *&$%#) $e'.e$ %he #!'e fi'*$2

He"e %he$e !'(*e%$ !'e .e') "&$i$%e% i%h *&/e' /e.e#&5*e% %he&'ie$  yet e*5h!$ie

 5(%%i fi!"i!# $e"%&' 'ef&'*$ %h!% 5'&*&%e fi!"i!# i"#($i& !% %he "&'e &f %he /e.e#&5*e%

!e/!2

III. Pol!( Res$onse to "!nan!al E)lus!on * Countr(

E)$er!enes

A#%h&(h fi!"i!# e@"#($i& h!$ &#) 'e"ei.e/ i/e$5'e!/ !%%e%i& i 'e"e% )e!'$- i $&*e

"&(%'ie$ 5e&5#e h!.e h!/ ! #e!# 'ih% %& ! /e5&$i% !""&(% f&' $&*e "&$i/e'!,#e %i*e2 I

Se/e- f&' e@!*5#e- ,!7$ !'e &% !##&e/ %& 'ef($e %& &5e ! $!.i$ &' /e5&$i% !""&(% (/e' 

$e"%i& &f %he B!7i B($ie$$ A"% &f 1982 I :'!"e- !'%i"#e 8 &f %he B!7i A"% &f F%h

J!(!') 198F fi'$% 'e"&ie/ %he 5'i"i5#e &f %he 'ih% %& ! ,!7 !""&(%2 The USA fe/e'!#

+

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 11/24

&.e'*e% i%'&/("e/ %he C&**(i%) Rei.e$%*e% A"% i 199- 5!'%#) i 'e$5&$e %& !

"&"e' !,&(% ,!7 ,'!"h "#&$('e$ i #&4i"&*e eih,&'h&&/$2 U/e' %hi$ #ei$#!%i&- hi"h

h!$ ,ee *&/ifie/ $e.e'!# %i*e$ $(,$e(e%#)- fe/e'!# ,!7 'e(#!%&') !e"ie$ '!%e ,!7$ &

%hei' eff&'%$ !/ effe"%i.ee$$ !% $e'.i #&4i"&*e "&**(i%ie$2 The *!i "'i%e'i& i$

*&'%!e #&!$ ,(% 'e(#!%&'$ !#$& "&$i/e' %he e@%e% %& hi"h ,!7$ *!7e 'e%!i# ,!7i

$e'.i"e$ !.!i#!,#e i #&4 !/ *&/e'!%e4i"&*e "&**(i%ie$2

The 'e(#!%&') !e"ie$ "! %!7e ! ,!7$ '!%i i%& !""&(% T& *!&' 7i/$ &f 5&#i")

'e$5&$e$ h!.e ,ee i*5#e*e%e/ ,) "e%'!# ,!7$ i 'e$5&$e %& fi!"i!# e@"#($i&< "&/e$ &f 

 5'!"%i"e; !/ $5e"ifi" #ei$#!%i&;2

a)%olunta#& 'ha#te#s an( 'o(es of #acticeV&#(%!') Ch!'%e'$ !/ C&/e$ &f P'!"%i"e /e.e#&5e/ ,) %he ,!7$ %he*$e#.e$ %h'&(h %hei' %'!/e

!$$&"i!%i&$ %& *!7e 5'&.i$i& f&' #ife4#ie; &' ,!$i"; ,!7 !""&(%$- !'e %he *&$% "&**&

'e$5&$e %& fi!"i!# e@"#($i&2 I *!) "!$e$- %he$e /e.e#&5*e%$ h!.e ,ee 5'&*5%e/ !/

e"&('!e/ ,) &.e'*e%$ "&"e'e/ %& i"'e!$e $&"i!# i"#($i&2

The e!'#ie$% &f %he$e .&#(%!') "h!'%e'$ !$ i%'&/("e/ i :'!"e i 1992 De.e#&5e/ ,) %he

:'e"h B!7e';$ A$$&"i!%i& i% "&**i%%e/ ,!7$ %& &5ei ! !ff&'/!,#e !""&(% i%h f!"i#i%ie$

$("h !$ ! "!$h "!'/- f'ee !""e$$ %& ! "!$h *!"hie e%&'7- ,!7 $%!%e*e%$ !/ ! e&%i!,#e

(*,e' &f "he(e$2

I Be#i(*- ! .&#(%!') "&/e &f 5'!"%i"e !$ i%'&/("e/ i J(#) 199 ,) %he Be#i! B!7e'$

A$$&"i!%i& =ABBQBVV> f&##&i ! 'e5&'% "&**i$$i&e/ ,) %he Mii$%') f&' E"&&*i" Aff!i'$2

Thi$ "&/e 5'&.i/e$ f&' ,!$i" ,!7i $e'.i"e$ f&' 5e&5#e & *&/e$% i"&*e$ h& #!"7 ! ,!7 

!""&(%2 A% ! *ii*(* %hi$ "!## /e5&$i% !""&(%; &ffe'$ %h'ee ,!$i" %)5e$ &f %'!$!"%i&< *&e)

%'!$fe'$- /e5&$i%$ !/ i%h/'!!#$ !/ ,!7 $%!%e*e%$ !#%h&(h i/i.i/(!# ,!7$ *!) &5% %&

&ffe' &%he' $e'.i"e$ if %he) i$h

I Ge'*!)- /e$5i%e ! (*,e' &f !%%e*5%$ %& i%'&/("e ! #e!# e%i%#e*e% %& ! "(''e% !""&(%

%h!% /i/ &% "!'') ! &.e'/'!f% f!"i#i%)- ! .&#(%!') "&/e !$ i%'&/("e/ ,) %he Ge'*! B!7e'$

A$$&"i!%i& i 19962 Thi$ *!7e$ 5'&.i$i& f&' ! E.e')*!; "(''e% !""&(%- &ffe'i ,!$i"

 ,!7i %'!$!"%i&$ ,(% i%h&(% ! &.e'/'!f% f!"i#i%)2

-

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 12/24

A""e$$ %& ,!$i" ,!7i i %he UK !/ A($%'!#i! h!$ ,ee !"hie.e/ %h'&(h .&#(%!')

!''!e*e%$ i%h ,!7$- ,(% h!$ &% i.&#.e/ f&'*!# "h!'%e'$2 I ,&%h "&(%'ie$- %he'e i$ ! *&'e

ee'!# B!7i C&/e- hi"h i"#(/e$ ! "&**i%*e% %& %e##i 5e&5#e !,&(% ,!$i" ,!7 

!""&(%$- ,(% /&e$ &% $e% /& %he fe!%('e$ $("h !""&(%$ $h&(#/ &ffe'2 I 00- %he A($%'!#i!

B!7e'$; A$$&"i!%i& *!/e ! !55#i"!%i& %& %he A($%'!#i! C&*5e%i%i& !/ C&$(*e' 

C&**i$$i& & ,eh!#f &f %e *e*,e' 'e%!i# ,!7$ =A($%'!#i! C&*5e%i%i& !/ C&$(*e' 

C&**i$$i&- 00>2 Thi$ 5'&5&$e/ ! ee'i" ,!$i" !""&(% i%h %he f&##&i *ii*(*

fe!%('e$< & !""&(% 7ee5i fee$ & *ii*(* ,!#!"e %& &5e %he !""&(% & *ii*(*

*&%h#) ,!#!"e 'e(i'e*e%$ (#i*i%e/ /e5&$i%$ f'ee &f "h!'e !/ $i@ &4/e5&$i%

%'!$!"%i&$ =i"#(/i %h'ee &.e'4%he4"&(%e' "!$h i%h/'!!#$> f'ee &f "h!'e e!"h *&%h2

De$5i%e %he$e e"&('!i .&#(%!') /e.e#&5*e%$- %he'e i$ e.i/e"e %h!% ,!$i" !""&(%$ !'e &%

!#!)$ 5'&*&%e/ %& 5e&5#e h& *ih% ,eefi% f'&* %he* *&$% =C&fe/e'!%i& /e #!

C&$&**!%i&- /( L&e*e% e% /( C!/'e /e Vie- 1999 B!7i C&/e S%!/!'/$ B&!'/- 00-

003- 00F - 00 :i!"i!# Se'.i"e$ C&$(*e' P!e#- 00 N!%i&!# A$$&"i!%i& &f Ci%ie$

A/.i"e B('e!(@- 00 Te$% A"h!%$- 001>2 A$ ! 'e$(#%- i B'i%!i- %he C&/e 5'&.i$i&$ 'e#!%i %&

 ,!$i" ,!7 !""&(%$ e'e $%'e%hee/ i %he 00 e/i%i&- i%h f('%he' %ih%ei %& %he

G(i/!"e %& C&/e $(,$"'i,e'$ e@5e"%e/ i 0062

b)*e$islation

Th'ee &f %he "&(%'ie$ $%(/ie/ i /e%!i# h!.e i%'&/("e/ #ei$#!%i& %h!% ,&%h i.e$ ! (i.e'$!#

'ih% %& ! ,!7 !""&(% !/- *&'e i*5&'%!%#) $5e##$ &(% %he 5'e"i$e !%('e &f %he ,!7i

$e'.i"e$ %h!% *($% ,e 5'&.i/e/2

I :'!"e- %he #! & e@"#($i& =9846> &f 9 J(#) 1998 'ei%e'!%e/ %he 'ih% %& ! !""&(% fi'$%

$e% &(% i %he 198F #!- !/ $%'e%hee/ i% i%h ! 'ih% %& ,!$i" ,!7i $e'.i"e$2 I% !#$&

$i*5#ifie/ %he 5'&"e$$ &f e@e'"i$i %he 'ih% %& ! !""&(%2 Thi$ *e!$ %h!% !) 5e'$& i%h

:'e"h !%i&!#i%) h!$ %he 'ih% %& &5e ! !""&(% !% !) 5'i.!%e &' 5(,#i" ,!7 !/- if 'ef($e/-

%he) "! !55#) %& %he B!(e /e :'!"e f&' i% %& /e$i!%e ! ,!7 %h!% $h&(#/ &5e ! !""&(%2

The 1998 #! !#$& *!/e 5'&.i$i& f&' ! /e"'ee /efii %he ,!$i" ,!7i $e'.i"e$ %& hi"h $("h

 5e&5#e $h&(#/ h!.e ! 'ih%- !$ e## !$ %he %!'iff "&/i%i&$ f&' %h&$e $e'.i"e$

/

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 13/24

I Be#i(*- ! ,!$i" ,!7i ,i## !$ i%'&/("e/ & 18%h J(#)- 001 !/ ,e"!*e e!"%e/ & F%h

M!'"h 003 i%h i*5#e*e%!%i& f'&* 1$% ?"%&,e'- 0032 Thi$ #! !55#ie$ %& !## ,!7$ !/ !i*$

%& ef&'"e %he 5'i"i5#e$ &f %he "h!'%e' ,) %he i*5&$i%i& &f $!"%i&$ if %he$e 5'i"i5#e$ !'e &%

!55#ie/2 I% /&e$- h&e.e'- & ,e)&/ %he 5'&.i$i&$ i %he e!'#ie' "h!'%e'- $e%%i &(% f('%he' 

*ii*(* $%!/!'/$ f&' ,!$i" ,!7 !""&(%$- i"#(/i ! "ei#i & "h!'e$ !/ ! *ii*(*

(*,e' &f f'ee f!"e4%&4f!"e %'!$!"%i&$

De.e#&5*e%$ i %he Ui%e/ S%!%e$ h!.e ,ee *&'e f'!*e%e/ 'ef#e"%i %he ,!7i $)$%e*

i%$e#f2 The'e h!.e ,ee ! (*,e' &f 5'&5&$!#$ %h!% ,!7$ $h&(#/ ,e 'e(i'e/ %& &ffe' #&4"&$%

"he"7i !""&(%$ =i%h .e') #& *ii*(* ,!#!"e 'e(i'e*e%$ !/ #& fee$> f&' 5e&5#e &

#& i"&*e$2 A#%h&(h ! $*!## (*,e' &f $%!%e$ h!.e 5!$$e/ $("h #!$ %he :e/e'!# G&.e'*e%

h!$ &%2

I *!) !)$- %he 5&#i") 'e$5&$e i C!!/! "&*,ie$ %he ,e$% &f /e.e#&5*e%$ i &%he' 

"&(%'ie$2 The fe/e'!# &.e'*e% $e% (5 ! %!$7 f&'"e & %he f(%('e &f %he C!!/i! fi!"i!#

$e'.i"e$ $e"%&'- hi"h 5(,#i$he/ i%$ 'e5&'% i 19982 I 1999- %he &.e'*e% 'e$5&/e/ i%h !

'e5&'% =De5!'%*e% &f :i!"e- C!!/!- 1999> $e%%i &(% 'ef&'* *e!$('e$- hi"h e'e %he

i"#(/e/ i #ei$#!%i& 5(% ,ef&'e P!'#i!*e%2 Bi## C48 !$ e!"%e/ i J(e- 001 !/ i"#(/e$

e '(#e$ /e$ie/ %& %!"7#e ,!7i e@"#($i&2 The$e i"#(/e '(#e$ 'e(i'i !## ,!7$ %&

 5'&.i/e !""&(%$ i%h&(% *ii*(* &5ei ,!#!"e$ %& !## C!!/i!$- 'e!'/#e$$ &f e*5#&)*e%

&' "'e/i% hi$%&')- i%h *ii*(* i/e%ifi"!%i& 'e(i'e*e%$2

IV. "!nan!al Inlus!on !n Ind!a

 I %he fi'$%4e.e' I/e@ &f :i!"i!# I"#($i& %& fi/ &(% %he e@%e% &f 'e!"h &f ,!7i $e'.i"e$

!*& 100 "&(%'ie$- I/i! h!$ ,ee '!7e/ 02 ?(% &f 1929 "'&'e h&($eh&#/$ i I/i!- &#) 628

"'&'e h&($eh&#/$ h!.e !""e$$ %& ,!7i $e'.i"e$2 A$ f!' !$ '('!# !'e!$ !'e "&"e'e/- &(% &f 

13283 "'&'e '('!# h&($eh&#/$ i I/i!- &#) F216 "'&'e '('!# h&($eh&#/$ h!.e !""e$$ %& ,!$i"

 ,!7i $e'.i"e$2 I 'e$5e"% &f (',! !'e!$- &#) F92 5e' "e% &f (',! h&($eh&#/$ h!.e !""e$$

%& ,!7i $e'.i"e$ !/ 3F 5e' "e% &f %he I/i!;$ (',! 5&5(#!%i&$ i%h !(!# i"&*e #e$$ %h!

R$ 0-000 h!.e !""e$$ %& ,!7i $e'.i"e$2 The #!%e$% N!%i&!# S!*5#e S('.e) ?'!i$!%i&

$('.e) 'e5&'%$ %h!% %he'e !'e &.e' 80 *i##i& 5&&' 5e&5#e #i.i i %he "i%ie$ !/ %&$ &f I/i!

!/ %he) #!"7 !""e$$ %& %he *&$% ,!$i" ,!7i $e'.i"e$ $("h !$ $!.i$ !""&(%$- "'e/i%-

0

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 14/24

'e*i%%!"e$ !/ 5!)*e% $e'.i"e$- fi!"i!# !/.i$&') $e'.i"e$- e%"2 L&4i"&*e '&(5$ /& &%

h!.e !""e$$ %& %he f&'*!# ,!7i $)$%e*$- !$ %he) ($(!##) /& &% h!.e %he /&"(*e%$ ee/e/ %&

&5e ! ,!7 !""&(%2 A$ ! 'e$(#%- %he) /e5e/ & %he if&'*!# $e"%&' f&' %hei' $!.i$ !/ #&!

'e(i'e*e%$2 Th($- fi!"i!# i"#($i& i$ "&$i/e'e/ %& ,e "'i%i"!# f&' !"hie.i i"#($i.e

'&%h- hi"h i%$e#f i$ 'e(i'e/ f&' e$('i &.e'!## $($%!i!,#e '&%h2 Re"&i$i %he

i*5&'%!"e &f i"#($i.e '&%h i I/i!- eff&'%$ !'e ,ei %!7e %& *!7e %he fi!"i!# $)$%e*

*&'e i"#($i.e2

T& ,(i#/ ! $%'("%('e !/ '&!/*!5 f&' :i!"i!# I"#($i&- %he G&.e'*e% &f I/i! !55&i%e/ !

$omm%ttee on  +%nan$%al "n$lus%on under t)e $)a%rmans)%# o' Dr.C.Ran(ara,an5 -t)en

De#uty Go&ernor o' Reser&e Ban o' "nd%a1 %n //0 2 The R!!'!! C&**i%%ee $(e$%e/

%h!% %he fi!"i!# i"#($i& $h&(#/ i"#(/e !""e$$ %& *!i$%'e!* fi!"i!# 5'&/("%$ $("h !$ ,!7 

!""&(%$- "'e/i%- 'e*i%%!"e$ !/ 5!)*e% $e'.i"e$- fi!"i!# !/.i$&') $e'.i"e$ !/ i$('!"e

f!"i#i%ie$2 M!7i ,!7i !/ 5!)*e% $e'.i"e$ !.!i#!,#e %& %he e%i'e 5&5(#!%i& i%h&(%

/i$"'i*i!%i& i$ %he *!i &,e"%i.e &f :i!"i!# I"#($i&2 Th($- %he *!i f&"($ &f fi!"i!#

i"#($i& i I/i! i$ & 5'&*&%i $($%!i!,#e /e.e#&5*e% !/ ee'!%i e*5#&)*e% i '('!#

!'e!$ f&' %he '('!# 5&5(#!%i&2 The "&**i%%ee !#$& &,$e'.e/ %h!% fi!"i!# i"#($i& *($% ,e

%!7e (5 i ! *i$$i& *&/e !/ $(e$%e/ ! N!%i&!# Mi$$i& & :i!"i!# I"#($i& =NM:I>

"&*5'i$i 'e5'e$e%!%i& &f !## $%!7eh&#/e'$ f&' $(e$%i %he &.e'!## 5&#i") "h!e$ 'e(i'e/-

!/ $(55&'%i $%!7eh&#/e'$ i %he /&*!i &f 5(,#i"- 5'i.!%e !/ NG? $e"%&'$ i (/e'%!7i

 5'&*&%i&!# ii%i!%i.e$2

V!'i&($ *e!$('e$ %!7e ,) ,&%h &.e'*e% &f I/i! !/ 'e$e'.e ,!7 &f I/i! f&' fi!"i!#

i"#($i& !'e !$ f&##&$<4

a. O$en!n+ of No "r!lls ,ountsi%h ! .ie %& eh!"i %he fi!"i!# i"#($i&- i %he Mi/ Te'* Re.ie &f %he P&#i")

=00406>- %he RBI !/.i$e/ !## ,!7$ i N&.e*,e' 00 %& *!7e !.!i#!,#e ! ,!$i"

 ,!7i &4f'i##$; !""&(% ei%he' i%h i#; &' .e') #& *ii*(* ,!#!"e$ !$ e## !$

"h!'e$ %h!% &(#/ *!7e $("h !""&(%$ !""e$$i,#e %& .!$% $e"%i&$ &f %he 5&5(#!%i&2 The

$(""e$$ &f %he fi!"i!# i"#($i& "! ,e *e!$('e/ i %e'*$ &f (*,e' &f N& :'i##

S!.i$ B!7 !""&(%$ &5ee/ ,) ,!7$ f&' e.e') !/(#% *e*,e' ,e#&i %& 5&&' !/

1

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 15/24

e!7e' $e"%i&$ &f %he $&"ie%)2 I 009410- ,!7$ e'e !/.i$e/ %& 5'&.i/e $*!##

&.e'/'!f%$ i $("h !""&(%$ (5%& 000 'e"7&e/ !$ i/i'e"% fi!"e %& !'i"(#%('e2 B)

M!'"h 010- ,!7$ h!/ 5'&.i/e/ 0218 *i##i& &.e'/'!f%$ !*&(%i %& 8 "'&'e2 Si"e

i"e5%i& i N&.e*,e' 00- *i##i& & f'i##$ !""&(%$; h!.e ,ee &5ee/ ,) ,!7$

 ,) M!'"h 011 i%h &(%$%!/i ,!#!"e &f 6-66 "'&'e2

3. General Cred%t Cards -GCCs1

Gee'!# P('5&$e C'e/i% C!'/$ =GCC$> &ffe'e/ ,) ,!7$ !% %hei' '('!# !/ $e*i4(',!

 ,'!"he$ !'e i %he !%('e &f 'e.&#.i "'e/i%- e%i%#i %he h&#/e' %& i%h/'! (5 %& %he

#i*i% $!"%i&e/ = -000>2 B) M!'"h 011- ,!7$ h!/ 5'&.i/e/ "'e/i% !'e!%i

1-308 "'&'e i 120 *i##i& GCC !""&(%$2

$. K%san Cred%t Cards -KCCs1

Ki$! C'e/i% C!'/$ =KCC$> S"he*e i%'&/("e/ i 1998499 !$ ! "'e/i% 5'&/("% %& !##&

h!$$#e f'ee 'e.&#.i "'e/i% %& f!'*e'$ ,) ,!7$ i '('!# !/ $e*i4(',! !'e!$2 A% e/4

M!'"h 011- %he %&%!# (*,e' &f KCC$ i$$(e/ ,) C&&5e'!%i.e ,!7$- Rei&!# R('!#

B!7$ =RRB$> !/ C&**e'"i!# ,!7$ !## &.e' %he "&(%') $%&&/ !% 10328F *i##i&2The #&! !*&(% $!"%i&e/ !!i$% KCC$ ,) ,!7$ h!$ i"'e!$e/ f'&* F6-9 "'&'e i

M!'"h 00 %& -6 "'&'e i M!'"h 0112 A% e/4M!'"h 011- %he %&%!# (*,e' &f 

KCC$ i$$(e/ ,) "&&5e'!%i.e ,!7$- RRB$ !/ C&**e'"i!# ,!7$ !## &.e' %he "&(%')

$%&&/ !% 10328F *i##i&2 ?f %he "(*(#!%i.e 10328F *i##i& "'e/i% "!'/$ i$$(e/- !$ !% 31 $%

M!'"h 011- F29F *i##i& "!'/$ =F621> e'e i$$(e/ ,) "&**e'"i!# ,!7$- f&##&e/

 ,) F020 *i##i& "!'/$ =39219> ,) "&4&5e'!%i.e ,!7$ !/ 120 *i##i& "!'/$ =1F263>

 ,) Rei&!# R('!# B!7$2 C&$e(e%#)- %he $h!'e &f "&&5e'!%i.e ,!7$ i %&%!# (*,e' 

&f "!'/$ i$$(e/ (/e' KCC $"he*e i$ 39219 !/ %h!% &f "&**e'"i!# ,!7$ i$ F6212

Si*i#!'#)- $h!'e &f "&**e'"i!# ,!7$ i %he %&%!# !*&(% $!"%i&e/ (/e' KCC S"he*e

i$ 6268 !/ %h!% &f "&&5e'!%i.e ,!7$ i$ 302F2

11

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 16/24

d. +%nan$%al "n$lus%on 6lans -+"61

A## /&*e$%i" S"he/(#e/ C&**e'"i!# B!7$ =SCB$> e'e !/.i$e/ i J!(!') 010 %&

/'! (5 $5e"ifi" B&!'/4!55'&.e/ :i!"i!# I"#($i& P#!$  =:IP> ,) M!'"h 010

i"&'5&'!%i "e'%!i ,!$i" *ii*(* (!#i%!%i.e fe!%('e$ !/ (!%i%!%i.e i/i"!%&'$ i%h

! .ie %& '&##i %he* &(% &.e' %he e@% %h'ee )e!'$2 A$ & 31 $% M!'"h 011- &(% &f 99-8F0

.i##!e$ i/e%ifie/ f&' e@%e$i& &f ,!7i $e'.i"e$- 3-39 .i##!e$ i%h 5&5(#!%i& &.e' 

000 h!.e ,ee "&.e'e/ (/e' :i!"i!# I"#($i& P#!$2 Si*i#!'#)- !$ & 31 $% M!'"h

011- (*,e' &f .i##!e$ i%h 5&5(#!%i& #e$$ %h! 000 "&.e'e/ (/e' :IP$ i$ F6-FF32

The (*,e' &f .i##!e$ "&.e'e/ %h'&(h ,!7 ,'!"he$ !$ & 31 $% M!'"h 011 i$ -68F

f&' 5'&.i/i ,!$i" ,!7i $e'.i"e$2 A$ & 31$% M!'"h 011- %he %&%!# (*,e' &f 

"($%&*e' $e'.i"e 5&i%$ /e5#&)e/ i$ 8-3612

e. Nat%onal Rural +%nan$%al "n$lus%on 6lan -NR+"61

Kee5i i .ie %he e&'*i%) &f %he %!$7 i.&#.e/- %he C&**i%%ee & :i!"i!# I"#($i&

'e"&**e/e/ %he $e%%i (5 &f ! *i$$i& *&/e N!%i&!# R('!# :i!"i!# I"#($i& P#!

=NR:IP> i%h ! %!'e% &f 5'&.i/i !""e$$ %& "&*5'ehe$i.e fi!"i!# $e'.i"e$ %& !% #e!$%

0 5e' "e% =2 *i##i&> &f %he e@"#(/e/ '('!# h&($eh&#/$ ,) 01 !/ %he 'e*!ii

 ,) 012 The 100 5e' "e% fi!"i!# i"#($i& /'i.e i$ 5'&'e$$i !## &.e' %he "&(%')2

'. Rela7at%on o' K8C Norms

The KYC 5'&"e/('e f&' &5ei !""&(%$ f&' %h&$e 5e'$&$ h& i%e/ %& 7ee5 ,!#!"e$

&% e@"ee/i '(5ee$ fif%) %h&($!/ = 0-000Q4> i !## %hei' !""&(%$ %!7e %&e%he' !/

12

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 17/24

%he %&%!# "'e/i% i !## %he !""&(%$ %!7e %&e%he' i$ &% e@5e"%e/ %& e@"ee/ '(5ee$ &e

#!7h = 1-00-000Q4> i ! )e!' h!$ ,ee $i*5#ifie/ %& e!,#e %h&$e ,e#&i %& #& i"&*e

'&(5$ i%h&(% /&"(*e%$ &f i/e%i%) !/ 5'&&f &f 'e$i/e"e %& &5e ,!7$ !""&(%$2 I

$("h "!$e$ ,!7$ "! %!7e i%'&/("%i& f'&* ! !""&(% h&#/e' & h&* f(## KYC

 5'&"e/('e h!$ ,ee "&*5#e%e/ !/ h!$ h!/ $!%i$f!"%&') %'!$!"%i&$ i%h %he ,!7 f&' !%

#e!$% $i@ *&%h$2 Ph&%&'!5h &f %he "($%&*e' h& 5'&5&$e$ %& &5e %he !""&(% !/ hi$

!//'e$$ ee/ %& ,e "e'%ifie/ ,) %he i%'&/("e'2 Re"e%#)- "#!'ifi"!%i& h!/ !#$& ,ee i$$(e/

%& f!"i#i%!%e !""&(% &5ei ,) "#&$e 'e#!%i.e$- e22 ife- $&- /!(h%e' !/ 5!'e%$ e%"2

h& #i.e i%h %hei' h($,!/- f!%he'Q*&%he' !/ $&- !$ %he "!$e *!) ,e- h& *!) &%

h!.e %he (%i#i%) ,i##$ 'e(i'e/ f&' !//'e$$ .e'ifi"!%i& i %hei' !*e2

(. Bus%ness Corres#ondent and Bus%ness +a$%l%tators -BC9B+1 Models

The (*,e' &f .i##!e$ "&.e'e/ %h'&(h B($ie$$ C&''e$5&/e%$ =BC> !$ & 31$% M!'"h

011 i$ 6-8012 The (*,e' &f .i##!e$ "&.e'e/ %h'&(h *&,i#e .!$ !/ ATM$ !$ &

31$%M!'"h 011 i$ 32 B($ie$$ :!"i#i%!%&'$ =B:$> 5#!) .i%!# '&#e i !"hie.i %he

&,e"%i.e$ &f :i!"i!# I"#($i& !/ RRB$ h!.e ,ee !/.i$e/ %& "&$i/e' !55&i%i

:!'*e'$ C#(,$ !$ B:2 B!$e/ & %he 7ee i%e'e$% $h& ,) RRB$ !/ :!'*e'$ C#(,$

!"%i !$ B($ie$$ :!"i#i%!%&'$ &f RRB$- %he fi!"i!# $(55&'% h!$ ,ee e@%e/e/ f&' 

(5$"!#i %he 5i#&% f&' :C$ !$ B:$ f&' !## .i##!e$ h!.i 5&5(#!%i& *&'e %h! 000 i

%he "&**!/ !'e!$ &f RRB$2 A$ & 31 De"e*,e' 011- 208 "'&'e $!"%i&e/ %&

RRB$ i 1 $%!%e$ f'&* :I:2

).  Role o' NABARD %n +%nan$%al "n$lus%on

Re$e'.e B!7 &f I/i! #i,e'!#ie/ i%$ 5&#i") %& i.i e%i%) %& &5ei &f S!.i$ B!7 

!""&(%$ ,) Se#f He#5 G'&(5 =SHG> i$ !55'&.e/2 N!%i&!# B!7 f&' A'i"(#%('e !/

R('!# De.e#&5*e% =NABARD> h!$ /e$ie/- /e.e#&5e/ !/ h!$ ,ee f!"i#i%!%i SHG4

B!7 Li7!e P'&'!**e i I/i! $i"e 199 i%h .!'i&($ 5!'%e' !e"ie$ #i7e B!7$-

 NG?$- G&.e'*e% Ae"ie$Q De5!'%*e%$- e%"2 The SHGB!7 Li7!e P'&'!**e

!/ &%he' Mi"'& :i!"e ii%i!%i.e$ ,) NABARD h!$ "&%'i,(%e/ *("h %&!'/$ fi!"i!#

i"#($i& 5'&"e$$ i I/i!2 The SHG4B!7 Li7!e P'&'!**e !/ Mi"'& :i!"e

I$%i%(%i&$ =M:I>4B!7 Li7!e P'&'!**e h!.e ,ee !""e5%e/ !$ effe"%i.e %&&#$ %&

1

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 18/24

i"#($i.e '&%h f&' e@%e/i .!'i&($ fi!"i!# $e'.i"e$ %& hi%he'%& e@"#(/e/ "!%e&'ie$

&f 5&&' !/ '('!# h&($eh&#/$2

%. Role o' "nd%a 6ost %n +%nan$%al "n$lus%on

A E@5e'% i%e'4*ii$%e'i!# C&**i%%ee & :i!"i!# I"#($i& (/e' %he Ch!i'*!$hi5 &f 

A,ay S)a !$ $e% (5 %& e@!*ie 5&%e%i!# $)e'ie$ ,e%ee %he eff&'%$ !% ,'&!/ ,!$e/

 ,!7i !/ fi!"i!# $e'.i"e$ /e#i.e') !% I/i! P&$% !/ %he #!'e' 5&#i") &!# &f 

fi!"i!# i"#($i&2 I% h!$ $(,*i%%e/ i%$ 'e5&'% %i%#e/ ;arness%n( t)e "nd%a 6ost

Netor 'or +%nan$%al "n$lus%on< & 16%h  J(e 0102  The "&**i%%ee h!$ *!/e %he

f&##&i 'e"&**e/!%i&$<41. I/i! P&$% $h&(#/ /e#i.e' #ih%eih%- #& "&$% ,!7 !""&(%$ %& !## %he I/i! "i%ie$

!/ e$5e"i!##) %& %he fi!"i!##) e@"#(/e/ 5&5(#!%i&22. I/i! P&$% $h&(#/ #&&7 f&' !)$ %& #e.e'!e i%$ #& "&$% 5#!%f&'* ,) 5'&.i/i %he

I/i! P&$% ,'!/e/ !""&(%$ %& &%he' $%'!%ei" 5!'%e'$- $("h !$ M:I$- *(%(!# f(/

!/ i$('!"e "&*5!ie$- !/ %e#e"&* &5e'!%&'$

. I/i! P&$% $h&(#/ !55#) i%$e#f %&!'/$ %he "h!##ee &f !"hie.i hih .&#(*e$ &f 

*&e) &'/e'$ he'e 5!)*e%$ &f !$ #i%%#e !$ R$ 10 !'e !"hie.e/ !% ! "h!'e &f #e$$

%h! R$ 021 hi#e 'e(i'i & $(,$i/) f'&* %he e@"he(e'2$. I/i! P&$% $h&(#/ e.&#.e %he *&e) &'/e' %& ,e"&*e ! *e"h!i$* f&' %'!$fe''i

*&e) f'&* &e P?SB !""&(% %& !&%he'- i$%e!/ &f ($% ,ei ! Me"h!i$* f&' 

/e#i.e'i "!$h f'&* &e 5e'$& %& !&%he'2

. I/i! P&$% *($% ,(i#/ ! 5!)*e%$ if'!$%'("%('e- %h'&(h ! !''!) &f "&%'!"%$ i%h

 5!'%e'$- "&e"%i (5 !## P?SB !""&(%$ !/ !""&(%$ &f i%$ 5!'%e'$- %& effe"%i.e#)

 ,e"&*e ! 5e'$& %& 5e'$& *&e) &'/e' "!5!,i#i%) =%h'&(h *&,i#e 5h&e$ &' e,

 ,'&$e'$> f&' ! #!'e $!%he &f I/i!2

+. I/i! P&$% *($% e#i"i% ! #!'e (*,e' &f 5!'%e'$ i %e'*$ &f fi!"i!# i"#($i&

 5#!)e'$- *&,i#e $e'.i"e 5'&.i/e'$ !/ i&.!%i.e e %e"h&#&i"!# "h&i"e$ i &'/e' 

%& i"'e!$e %he $ie &f %he e%&'72-. I/i! P&$% *($% &'7 "#&$e#) i%h ! /i.e'$e !''!) &f &.e'*e% !e"ie$ $& %h!%

%hei' GP 5!)*e%$ 'e(i'e*e%$ !'e *e% %h'&(h ! "&*,i!%i& &f %he P?SB

!""&(%$ he#/ ,) "i%ie$ !/ *&e) &'/e'$ /e#i.e'e/ ,) &.e'*e% %& %h&$e P?SB

!""&(%$2 The Mii$%') &f :i!"e $h&(#/ &'7 i%h I/i! P&$% i '!5i/#) '&##i &(%

%hi$ 5#!%f&'* !/ e%&'7- i.e i%$ i*5&'%!% i*5#i"!%i&$ f&' /i'e"%- %!'e%e/

/e#i.e') &f &.e'*e% $(,$i/ie$2

1$

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 19/24

/. I/i! P&$% $h&(#/ 5#!) ! '&#e i %he e*e'e") "'e/i% !$5e"% &f fi!"i!# i"#($i&-

%h'&(h ! 5#!%f&'* ,(i#/i !55'&!"h he'e 5'i.!%e #e/e'$ /e#i.e' "'e/i% %& %he 5&&' 

%h'&(h ! "&*5e%i%i.e f'!*e&'72

0. I/i! P&$% $h&(#/ 'e(e$% %he !//i%i& &f i%$ fi!"i!# i"#($i& 5'&e"% i%& %he Te'*$

&f Refe'e"e &f %he 'e"e%#) !&("e/ Te"h&#&) A/.i$&') G'&(5 f&' Ui(e

P'&e"%$- !/ %he #e!/e'$hi5 %e!* &f %he I/i! P&$% fi!"i!# i"#($i& 5'&e"% $h&(#/

"#&$e#) e!e i %he &'7 &f %hi$ G'&(5- $& !$ %& ,'i i %he ,e$% 5'!"%i"e$ f&' 

 5'&e"% *!!e*e%21. The '&#e &f %he P&$% ?ffi"e S!.i$ B!7 !$ ! !e% &f %he Mii$%') &f :i!"e

$h&(#/ ,e 'e.i$i%e/ !/ e@5!/e/ %& e!,#e I/i! P&$% %& 5#!) ! #!'e'- /i'e"% '&#e i

fi!"i!# i"#($i& !/ ,(i#/ !55'&5'i!%e e!,#i !'"hi%e"%('e2

 ,. Te$)nolo(%$al %nno&at%ons

If'!$%'("%('e &f .i##!e #e.e# 7i&$7$ i$ ,ei 5'&*&%e/ !"'&$$ %he "&(%') ,) i%e'e%

$e'.i"e 5'&.i/e'$- 5(,#i"45'i.!%e 5!'%e'$hi5$ !/ !'i4,($ie$$ "&'5&'!%e2 ITC;$ e4

Ch&(5!# i$ ,) f!' %he *&$% $(""e$$f(# *&/e# %h!% h!$ (#&"7e/ .!#(e f&' !## %he

$%!7eh&#/e'$2 U/e' %he If&'*!%i& Vi##!e Re$e!'"h P'&e"% i*5#e*e%e/ ,) %he M S

S!*i!%h! Re$e!'"h :&(/!%i& f&' P&/i"he'') fi$he'*e- "&*5(%e'$ i%h i%e'e%

"&e"%i&$ !'e 5#!"e/ i %he .i##!e "e%'e- %h'&(h hi"h 'e(#!' e!%he' 'e5&'%$ &f %he

I/i! Me%e&'&#&) &ffi"e "! ,e !""e$$e/2 Vi##!e #e.e# i%e'e% 7i&$7$- ,) "'e!%i

!!'ee$$ !/ /e*!/ f&' fi!"i!# $e'.i"e$- "! ,e ! effe"%i.e "h!e# %& /e#i.e' "&$%

effe"%i.e fi!"i!# $e'.i"e$ %& %he '('!# 5&&' 'ih% !% %hei' /&&'$%e52

. Rural %n'rastru$ture de&elo#ment

I% i$ i/e#) !"7&#e/e/ %h!% #!"7 &f if'!$%'("%('e i$ ! *!&' "&$%'!i% f&' '&%h !/

 5&.e'%) !##e.i!%i&2 I*5'&.e*e% i '('!# if'!$%'("%('e i$- %he'ef&'e- "'("i!# f&' ,'&!/4 ,!$e/ i"#($i.e '&%h2 U/e' R('!# If'!$%'("%('e De.e#&5*e% :(/ =RID:>-

 NABARD 5'&.i/e$ #&!$ %& S%!%e G&.e'*e%$ f&' %he "'e!%i& &f '('!# if'!$%'("%('e-

 ,'&!/#) (/e' !'i"(#%('e !/ 'e#!%e/ $e"%&'$- '('!# "&e"%i.i%) !/ $&"i!# $e"%&'2

C&*5#e%e/ 5'&e"%$ (/e' RID: h!.e #e/ %& %he 'e!#i!%i& &f e"&&*i" !/ $&"i!#

 ,eefi%$ i %e'*$ &f "'e!%i& &f !//i%i&!# i''i!%i& 5&%e%i!# ee'!%i& &f !//i%i&!#1

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 20/24

e*5#&)*e% f&' %he '('!# 5e&5#e "&%'i,(%i& %& %he e"&&*i" e!#%h &f %he "&(%') !##

e!%he' "&e"%i.i%)Q i*5'&.e/ "&e"%i.i%) %& .i##!e$ !/ *!'7e%i "e%'e$ !/

i*5'&.e*e%$ i (!#i%) &f #ife %h'&(h ,e%%e' f!"i#i%ie$ i e/("!%i&- he!#%h !/ /'i7i

!%e' $(55#)2 S("h if'!$%'("%('e f!"i#i%ie$ 5'&*i$e %& i*5'&.e %he !""e$$i,i#i%) &f %he

'('!# 5&&' %& ,!7$- !/ !#$& i*5'&.e %hei' $!.i$ h!,i% !/ "'e/i% !,$&'5%i& "!5!"i%)2

V. t'e Road a'ead for Ind!a Issues and C'allen+es

I/i! "(''e%#) f!"e$ $e.e'!# i$$(e$ !/ "h!##ee$ i %he !'e! &f :i!"i!# I"#($i& f&' 

I"#($i.e '&%h2 S!#ie% !*& %he* !'e $%!%e/ he'e ,e#&

1. S#at%al D%str%3ut%on o' Ban%n( Ser&%$es: E.e %h&(h !f%e' &f%e e*5h!$ie/ 5&#i")

i%e'.e%i& ,) %he &.e'*e% !/ %he "&"e'%e/ eff&'%$ &f Re$e'.e B!7 &f I/i! !/

%he 5(,#i" $e"%&' ,!7$ %he'e h!$ ,ee ! $iifi"!% i"'e!$e i %he (*,e' &f ,!7 &ffi"e$

i %he '('!# !'e!$ ,(% i% i$ &% i %(e i%h %he #!'e 5&5(#!%i& #i.i i %he '('!# !'e!$2

:&' ! 5&5(#!%i& &f 0 &#) F &f ,!7 &ffi"e$ 5'&.i/e %he fi!"i!# $e'.i"e$2

2. Re(%onal D%str%3ut%on o' Ban%n( Ser&%$es: The /!%! & fi!"i!# "&.e'!e ,'i$ %&

f&'e %h!% %he'e h!$ ,ee (e.e /i$%'i,(%i& &f %he ,!7i $e'.i"e$ i %e'*$ &f 5&5(#!%i&"&.e'!e 5e' ,!7 &ffi"e i %he $i@ 'ei&$ .i N&'%he'- N&'%h4e!$%e'- E!$%e'- Ce%'!#-

e$%e' !/ S&(%he' 'ei&$ &f %he "&(%')2

. Ban Bran$)es !'e 'e(i'e/ %& ,e i"'e!$e/ !$ i% h!$ ! /i'e"% i*5!"% & %he 5'&'e$$ &f 

fi!"i!# i"#($i&2 I% i$ "#e!'#) e$%!,#i$he/ %h!% !$ %he ,!7 ,'!"he$ i"'e!$e (*,e' &f 

 ,!7 !""&(%$ !#$& i"'e!$e $iifi"!%#)2

$. 6o&erty le&els !'e h!.i /i'e"% 'e#!%i&$hi5 i%h %he 5'&'e$$ &f fi!"i!# i"#($i&2 I%

h!$ ,ee i/e#) &%e/ %h!% !$ %he 5&.e'%) #e.e#$ /e"'e!$e fi!"i!# i"#($i& !#$&

i"'e!$e2 A$ $("h- %he'e $h&(#/ ,e *(#%i f&#/ $%'!%ei" !55'&!"h i $("h 5&.e'%)

/&*i!%e/ !'e!$ f&' fi!"i!# i"#($i&2

. SC9ST #o#ulat%on: I% i$ !#$& *!%%e' &f "&"e' %h!% i %he !'e!$ &f S"he/(#e/

C!$%e$QS"he/(#e/ T'i,e$ 5&5(#!%i&- %he 5'&'e$$ &f :i!"i!# I"#($i& i$ $#& hi"h

1+

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 21/24

i/i"!%e$ %h!% %he eff&'%$ f&' :i!"i!# I"#($i& h!$ %& ,e i"'e!$e/ $iifi"!%#) i $("h

!'e!$ i &'/e' %& ,'i i $&"i!# !/ e"&&*i" e(i%) i %he $&"ie%)2

+. O&er$om%n( Baners’ A&ers%on 'or +%nan$%al "n$lus%on: E.e %h&(h & ,!7e' 

&5e#) e@5'e$$e$ hi$ !.e'$i& f&' %he fi!"i!# i"#($i& 5'&"e$$- &.e'%#) i% "! ,e &%i"e/

%h!% %he) !'e !.e'$e %& i% i .ie &f %he "&$% !$5e"%$ i.&#.e/ i &5ei &f & f'i##

!""&(%$2

-. ;%() o#erat%onal $osts< M&$% fi!"i!# $e'.i"e 5'&.i/e'$ !'e !') &f 5'&.i/i 5'&/("%$

!/ $e'.i"e$ !55'&5'i!%e %& #& i"&*e f!*i#ie$ & !""&(% &f %he hih %'!$!"%i& "&$%$

i%'i$i" %& $*!## .!#(e !""&(%$ i%h #i*i%e/ (*,e'$ &f %'!$!"%i&$2 I %he 5e'"e5%i&

&f ,!7 *!!e*e%$ %hi$ 'e/("e$ fi!"i!##) i"#($i.e $e'.i"e$ %& "&'5&'!%e $&"i!#

'e$5&$i,i#i%) '!%he' %h! 'e!# ,($ie$$2

/. L%m%ted a&a%la3%l%ty o' a##ro#r%ate te$)nolo(y! "he 3e& driver of 4idespread

5nancial inclusion is the proliferation of e65nancial inclusion or the application

of innovative7 stable and reliable Information and *ommunication "echnolog&

8I*"). "he challenge is to integrate the dail& transactions done through hand

held devices 4ith the ban39s main server. Furthermore7 the devices should be

capable of handling transactions related to at least four main t&pes of 

ban3ing products! savings cum overdraft accounts7 pure savings products7

remittance products and entrepreneurial credit such as :** and ;**.

0. Greater em#)as%s %s re4u%red on '%nan$%al %n$lus%on 'or t)e a(ed< The ee/ f&' 

fi!"i!##) i"#($i.e $e'.i"e$ h!$ !"%(!##) i"'e!$e/ i 'e"e% )e!'$ !$ %he "&$% &f $&"i!#

"&**i%*e%$ $("h !$ he!#%h- $!fe%) !/ $e"('i%) h!$ 'i$e !#& i%h i*5'&.e/ #ife

e@5e"%!")2 hi#e 5e&5#e 'e%i'e 'e#!%i.e#) )&( %he) ee/ !/e(!%e f(/$ %& *!i%!i

%hei' $%!/!'/$ &f #i.i2 The ee/ f&' fi!"i!# $e'.i"e$ $("h !$ i$('!"e- 'e*i%%!"e$-

'e.e'$e *&'%!e #&!$- f!"i#i%ie$ f&' 5e$i&e'$ !/ /e5&$i% $"he*e$ f&' %he &#/e' 

 5&5(#!%i& h!$ '& &.e' %i*e2

1. La$ o' tra%n%n(' The :LCC =:i!"i!# Li%e'!") !/ C'e/i% C&($e##i Ce%'e$>$%!ff $h&(#/ i/e!##) !$$i$% !/ (i/e 5e&5#e %& *!!e %hei' fi!"e$ *&$% effe"%i.e#)2

He"e- %he) $h&(#/ h!.e $&(/ 7&#e/e &f ,!7i- #! !/ fi!"e !/ ee/ %& ,e

e(i55e/ i%h $&"i!# $7i##$ $("h !$ %e!* &'7 !/ effe"%i.e "&**(i"!%i&2 U5'!/i

&f 7&#e/e i$ !#$& 'e(i'e/ %& 7ee5 "'e/i% "&($e#&'$ !,'e!$% &f %he #!%e$% /e.e#&5*e%$

i %he ,!7i $e"%&'2

1-

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 22/24

The G&.e'*e% &f I/i! i$ "&**i%%e/ %& e$('i fi!"i!# i"#($i& f&' %he e%i'e

 5&5(#!%i& !/ %hi$ i%e%i& h!$ ,ee 'ef#e"%e/ i %he 5&#i") ii%i!%i.e$ %!7e &.e' %he #!$%

fe )e!'$2 V!'i&($ 5&#i"ie$ h!.e ,ee $%i*(#!%e/ ,) %he 'e"&**e/!%i&$ &f %he

"&**i%%ee$ $e% (5 f&' $(e$%i $%'!%eie$ %& 5'&*&%e fi!"i!# i"#($i& !/ i*5'&.e

%he he!#%h &f '('!# fi!"i!# $%'("%('e$2  i%h %he &.e'!## f'!*e&'7 i 5#!"e- i% i$ &

%i*e %& f&"($ & #!'e $"!#e i*5#e*e%!%i& &f %he $(e$%e/ 5&#i"ie$2

VI. Conlus!on

I*5&'%!"e &f fi!"i!# i"#($i& !'i$e$ f'&* %he 5'&,#e* &f fi!"i!# e@"#($i& &f e!'#) 3

 ,i##i& 5e&5#e f'&* %he f&'*!# fi!"i!# $e'.i"e$ !"'&$$ %he &'#/2 i%h &#) 3F &f 5&5(#!%i&e!e/ i f&'*!# ,!7i- I/i! h!$- 13 *i##i& fi!"i!##) e@"#(/e/ h&($eh&#/$- %he $e"&/

hihe$% (*,e' !f%e' Chi!2 :('%he'- %he 'e!# '!%e &f fi!"i!# i"#($i& i I/i! i$ !#$& .e') #&

!/ !,&(% F0 &f %he ,!7 !""&(% h&#/e'$ ($e %hei' !""&(%$ &% e.e &"e ! *&%h2 :i!"i!#

I"#($i& h!$ f!' 'e!"hi "&$e(e"e$- hi"h "! he#5 *!) 5e&5#e "&*e &(% &f !,e"%

 5&.e'%) "&/i%i&$2

:i!"i!# i"#($i& 5'&.i/e$ f&'*!# i/e%i%)- !""e$$ %& 5!)*e%$ $)$%e* /e5&$i% i$('!"e2 The

&,e"%i.e &f fi!"i!# i"#($i& i$ %& e@%e/ %he $"&5e &f !"%i.i%ie$ &f %he &'!ie/ fi!"i!#

$)$%e* %& i"#(/e i%hi i%$ !*,i% 5e&5#e i%h #& i"&*e$2 Th'&(h '!/(!%e/ "'e/i%- %he

!%%e*5% *($% ,e %& #if% %he 5&&' f'&* &e #e.e# %& !&%he' $& %h!% %he) "&*e &(% &f 5&.e'%)2 The'e

i$ ! ee/ f&' "&&'/i!%e/ !"%i& ,e%ee %he ,!7$- %he G&.e'*e% !/ &%he'$ %& f!"i#i%!%e

!""e$$ %& ,!7 !""&(%$ !*&$% %he fi!"i!##) e@"#(/e/2

 I% i$ "&"#(/e/ %h!% fi!"i!# i"#($i& h!$ ,ee *!/e ! i%e'!# 5!'% &f %he ,!7i $e"%&' 

 5&#i") i I/i!2 RBI i$ f('%he'i fi!"i!# i"#($i& i ! *i$$i& *&/e %h'&(h ! "&*,i!%i& &f 

$%'!%eie$ '!i f'&* 'e#!@!%i& &f 'e(#!%&') (i/e#ie$- 5'&.i$i& &f i&.!%i.e 5'&/("%$-

e"&('!i ($e &f %e"h&#&) !/ &%he' $(55&'%i.e *e!$('e$ f&' !"hie.i $($%!i!,#e !/

$"!#!,#e fi!"i!# i"#($i&2 :i!"i!# i"#($i& i$ %he !%e!) f&' !"hie.i i"#($i.e '&%h i

I/i!2 A## %he "&**e'"i!# ,!7$ i I/i! i"#(/i "&&5e'!%i.e ,!7$ !'e !"%i.e#) i.&#.e/ i

fi!"i!# i"#($i& 5'&"e$$ %h'&(h &5ei &f e ,'!"he$ i '('!# !/ (',! !'e!$ !/ ($e &f 

1/

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 23/24

BC$QB:$2 e $h&(#/ e$('e %h!% !## %he I/i!$ $h&(#/ h!.e !""e$$ %& ,!$i" ,!7i $e'.i"e$ f&' 

!"hie.i $($%!i!,#e e"&&*i" /e.e#&5*e%2

 Bibliograpy

i2 A(!# Re5&'% &f NABARD 009410

ii2 De.!7i M(%h(7'i$h!- +%nan$%al "n$lus%on<- The J&('!# &f I/i! I$%i%(%e &f 

B!7i !/ :i!"e- A5'i#4J(e 008- P5230433 S%!%($ &f Mi"'& fi!"e i I/i!-

 NABARD- f'&* 008 %& 0112

iii2 D'2 S!*)-Vihe$!'!- D'2 Vi!)!#!7$h*i =011>< 2Role o' +%nan$%al "n$lus%on 'or

"n$lus%&e Grot) %n "nd%a - Issues ! Callenges3

10

7/23/2019 Financial Inclusion as a Goal For Development

http://slidepdf.com/reader/full/financial-inclusion-as-a-goal-for-development 24/24

i.2 E#!ie Ke*5$&- A/e#e A%7i$& !/ ?/i#e Pi##e) =00F>< 6ol%$y le&el res#onse to

'%nan$%al e7$lus%on %n de&elo#ed e$onom%es: lessons 'or de&elo#%n( $ountr%es<  The

Pe'$&!# :i!"e Re$e!'"h Ce%'e- Ui.e'$i%) &f B'i$%&# -Se5%e*,e' 00F

.2 :ICCI- 6romot%n( +%nan$%al "n$lus%on: Can t)e $onstra%nts o' #ol%t%$al e$onomy 3e

o&er$ome=< - ! $%(/) (/e' UNDP4NABARD :i!"i!# I"#($i& P'&e"% (/e' ! Mi"'&

C!5i%!# G'!% %& :e/e'!%i& &f I/i! Ch!*,e' &f C&**e'"e !/ I/($%').

.i2 G!/e!'- A2U - +%nan$%al "n$lus%on: "ssues and C)allen(es- Vii*!)!- V&#2VII

=F>- 00640- P52F946

.ii2 G&.e'*e% &f I/i! =008>- Re#ort o' t)e Comm%ttee -C)a%rman: C.Ran(ara,an1

on t)e +%nan$%al "n$lus%on- J!(!') 0082

.iii2 Lee#!/h!'- V =00>- Ta%n( Ban%n( Ser&%$es to t)e Common Man: +%nan$%al

"n$lus%on- C&**e*&'!%i.e Le"%('e ,) Sh'i V2Lee#!/h!'- De5(%) G&.e'&'- RBI-

:e/,!7 H&'*i$ Me*&'i!# :&(/!%i&- E'!7(#!*- De"e*,e' - 002

i@2 M!he/'! De.2S2=006>- +%nan$%al "n$lus%on > "ssues and C)allen(es- E"&&*i"

!/ P&#i%i"!# ee7#)- V&#2F1 =F1>- ?"%&,e' 1F4?"%&,e' 0- 0062

@2 M!%he J&$e5h- +%nan$%al "n$lus%on 'or "n$lus%&e Grot)- Vii*!)!- V&#2VIII-

 N&2- 00408- 552132

@i2 Re5&'% & T'e/ !/ P'&'e$$ &f B!7i i I/i!- RBI- 010411

@ii2 T'i.e/i- P'i%i*!=008> +%nan$%al "n$lus%on: A Must 'or +%nan$%al Sta3%l%ty-Vii*!)!- V&#2I =>- 008409- P52946F

@iii2 &'#/ B!7 =008>< +%nan$e 'or All ! 6ol%$%es and 6%t'alls %n E7#and%n( A$$ess-

&'#/ B!7- !$hi%&2

2