FINANCIAL INCLUSIONFinancial Inclusion stands for delivery of

banking/financial services to vast section of low income groups (disadvantaged

persons), at an affordable cost.

OBJECTIVE:- To introduce low income groups to the Banking System:- Assist them in building financial capacity:- Making them bankable customers:- Develop the banking business

The scope of financial inclusion can be expanded in two ways.

through state-driven intervention by way of statutory enactments.

through voluntary effort by the banking community itself for evolving various strategies to bring within the ambit of the banking sector the large strata of society.

STEPS INITIATED BY RBI Opening of no frills accounts. Relaxation in KYC in opening such a/c. Lending under govt. sponsored scheme.

new branch authorization policy of Reserve Bank

Financial inclusion plan (FIP)- It started in April, 2010, and banks were asked to prepare another three-year FIP for the period 2013-16. Under which all state-run and private sector banks have to submit a board-approved, three-year financial inclusion plan (FIP)

Products offered under financial inclusion

Deposits Micro Credit Financial products

Insurance Mutual funds

Strategies and steps• AWARENESS

Ration card / Electoral ID cards of the families were taken for fulfilling the simplified KYC norms.Photographs of all the persons who opened bank accounts were taken on the spot by a photographer accompanying the bank team.

“No frills” accounts. the farmer’s credit card or KCC is being used ensuring first

to credit rather than savings. no frills account was followed by small overdraft facility or

a general purpose revolving credit upto pre-specified limit. Recognizing the need for providing social security (life,

disability and health cover).

Pradhan Mantri Jan Dhan Yojana

In Aug,2014 Indian Prime Minister (Narendra Modi) launched an initiative to bank the poor.

Scheme promises a bank account,a debit card, and an insurance cover of 1 lakh for poor families.

1.5 crore bank accounts on the first day of the programme on 28 August 2014

The challenge…. ahead Operational Cost Distribution Channel/ Partnering Payment system

Strengthening the reach.. Correspondents Partnering

Post offices Telco’s SHG MFI NBFC’s

Success Story’s Bank of India’s ‘Abhay’ – Credit Councelling

Centre Pragathi Gramin Bank, Bellary, Karnatak

(Sponsor: Canara Bank) A survey on financial access in 2011 revealed

that India had 10.6 branches and 8.9 automated teller machine (ATMs) per 0.1 million population. Compared to this, China had 23.8 branches and 49.6 ATMs, while Brazil had 46.2 branches and 119.6 ATMs per 0.1 million people

…………… a lot needs to be done..!!

THANK YOU!

PRESENTED BY: YUGANTAR KHANDURI