Financial Inclusion Through Commercial Banks- a Road Map Towards Future Growth (With Reference to Krishna District- Andhra Pradesh)

Abstract

The financial sector reforms have been remarkable in progress and their performance has become a major concern for planners' and policymakers in India. The development of an economy depends on how efficiently the financial sector performs and links up with the function of financial intermediation. In India, the financial market and banks have to play a predominant role and they are taking a number of initiatives in order to expand financial services towards weaker sections of the society. Financial inclusion Is the delivery of formal banking services to the vast sections of lower Income groups at an affordable cost. As stated by Mr. Arun Jaitley (2014), at present, more than 40 per cent of Indian households do not have access to banking services. In developed countries, financial inclusion is a burning issue. In USA, 9 per cent of the population do not have any bank account (Mohan, 2006 Jwhereas, in Swe den and Germany, this is about 2 per cent and 3 per cent of adults who do not have an account. Countries with high level of inequity record higher levels of banking exclusion. The Prime Minister of India Shrl Narendra Modi launched the 'Financial Inclusion Mission' on Independence Day. The main objective is to ensure that every household in India has access to banking services such as savings accounts , credit, remittances, insurance and pension