micro finance and financial inclusion
DESCRIPTION
The main purpose of the research paper is to demonstrate the effects of Microfinance as a part of Financial Inclusion in India. Microfinance: One of the Key drivers of Financial InclusionTRANSCRIPT
Presented By :-Shrawan Kumar DwivediNitesh Kumar Narayan
Masarrat Ali Rajnagalwala
OBJECTIVEThe main purpose of the research paper is to
demonstrate the effects of Microfinance as a part of Financial Inclusion in India.
Is Microfinance really a tool to fight against poverty?
Our research paper is totally based on the secondary data available on websites of different financial institution.
Microfinance can be defined as a broad range of financial services such as deposits, loans, payment services, money transfers and insurance to poor and low-income households and their micro-enterprises.
Financial Inclusion is the delivery of banking services at affordable costs to vast sections of disadvantaged and low income groups.
Microfinance – the key tool of financial inclusion
Microcredit – small loans to the poorMicrofinance savings, insurance, money transfer
services and other financial products targeted at low-income clients
Clients – women; low income; no access to formal financial services
Providers – NGO/MFIs, government programs, commercial banks, development banks.
Funders – development community; foundations; private sector.
FINDINGS
Distribution of Bank Offices in India
Why low income families Likes/Dislikes Banking Services in IndiaLIKES DISLIKESLower Interest
rates,Very little pressure
to repay,Waiving of loans,Enabling schemes
for the farmers.
Time consuming,Bribe officials,Loans subject to
favoritism,No collateral
security,
Illiteracy .
Less constrained spending
Low cost services
Free Use of Money
Easy pathway out of poverty
Good Social, economic
High standard of living
Financial lliteracy Good financial habits
Good education
Macro -environment Personal characteristics
Social/wider inclusion
Financialinclusion
Low or controlled debtAsset ownership
Employment
High Income
‘ABC’ of Financial InclusionAdvice – solving money and debt problems at
low costBanking – increasing the take up of basic
bank accounts and other similar services like those a credit union could provide
Credit – providing affordable loans and other forms of credit
Financial Inclusion – Steps Taken
Co-operative Movement Setting up of State Bank of India Nationalization of banks RRBs Self Help Groups
--- Still We Failed! --- Why?
----becauseo Large Populationo Absence of reach and coverageo Delivery Mechanismo High maintenance costs for accountso Lack of electricity
Major Milestones 1969 : Nationalization of Banks1975 : Establishment of Regional Rural Banks1982 : Establishment of NABARD1992 : Launching of the SHG – Bank Linkage1998 : NABARD sets a goal for linking one million SHGs by 20082000 : Establishment of SIDBI Foundation for Microcredit2005 : One million SHG linkage target achieved 3 years ahead of
date2006 : Committee on Financial Inclusion2007 : Proposed bill on microfinance regulation introduced in
parliament2008 : Number of Kisan Credit cards – 76 million2009 : No.of rural bank branches – 31,727 constituting 39.7% of
total bank branches,2010 : Increased Rs.100 crore each for Financial Inclusion and
Financial Inclusion Technology.
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CONCLUSION
THANK YOU
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