Topic- Inclusive growth and issues arising from it.
7) What do you think are the barriers to achieve financial inclusion in India. Discuss. Also discuss the steps taken by India to improve financial inclusion in the country.(250 words)
Why this question
FInancial inclusion is an essential ingredient for an inclusive development and meaningful participation of all the citizens in the economy. India has been striving hard to become an inclusive society. In this context it is essential to discuss what are the challenges faced by the government in achieving financial inclusion as well as discuss various initiatives taken by the government to ameliorate the situation.
Discuss- this is an all-encompassing directive which mandates us to write in detail about the key demand of the question. we also have to discuss about the related and important aspects of the question in order to bring out a complete picture of the issue in hand.
Key demand of the question.
The question wants us to write in detail about the problems faced in achieving financial inclusion in India. It also wants us to discuss in detail about the initiatives taken by the government to improve the situation.
Structure of the answer
Introduction– briefly discuss the importance of financial inclusion for a modern economy- channelizing household savings, forwarding institutional credit, providing opportunities for development etc.
- Discuss the barriers to financial inclusion- e.g low income, poverty and illiteracy and lack of awareness; e branch proximity, timings, cumbersome documentation and procedures, attitude of the bank staff and language. Low penetration of financial services, less efficiency of business correspondents also limits the success of financial inclusion. Marginal farmers, landless labourers, oral lessees, self-employed and unorganised sector enterprises, urban slum dwellers, migrants or ethnic minorities and socially excluded groups, senior citizens and women are out of the preview of financial inclusion. Lack of financial literacy and poor marketing of financial products etc.
- Discuss the programmes initiated by the GOI to promote financial inclusion in the country. E.g National Backward Classes Finance and Development Corporation (NBCFDC); National Safai Karamcharis Finance and Development Corporation (NSKFDC); National Scheduled Castes Finance and Development Corporation (NSCFDC); National Scheduled Tribes Finance and Development Corporation (NSTFDC); National Minorities Finance and Development Corporation (NMDFC). National Handicapped Finance and Development Corporation (NHFDC). Rashtriya Mahila Kosh (RMK). MUDRA Yojana etc.
Conclusion– sum up your discussion in a few lines and form a fair and a balanced conclusion on the above issue.