Financial Inclusion - Opportunities and Challenges

Abstract

Financial Inclusion is now wi thin reach with the advent of Information and Communication technology. The long strides of India in technology have enabled the country to be recognized as power house in knowledge economy. It has prompted even President Barack Obama of USA to persuade the students to study math and science more so that they are competitive to students from Bangalore and Peking.(As written in his book ''Audacity of Hope"). Yes, there are challenges. But we can surmount them. The journey towards inclusive growth has started. Total 150 million basic SB Accounts have been opened in India in the recent past. Need of the hour is to include them by financing them for livelihood proj ects by imparting financial literacy. While Financial Inclusion is a supply side initiative, Financial Literacy is demand side initiative. SHG concept should be popularized and loans should be given for livelihood activities. There should be emphasis for encouraging women entrepreneurs in backward Districts for formation of women SHG. Banks should accept that poor are bankable and they have the credit absorption capacity. There is fortune at the bottom of the pyramid and financial inclusion is a business proposition.