Dynamics of Financial Inclusion in India by Dr. Ramashish Purvey

Financial Inclusion is the process of ensuring access to appropriate financial products and services needed by vulnerable groups such as economically and socially weaker sections and low income groups at an affordable cost in a fair and transparent manner by formal financial institutions. It not only means to open savings account of people, but also includes providing financial advice, insurance and credit services.

In fact, access to affordable finance enables the poor and vulnerable groups to undertake economic activities and take advantages of growth opportunities for economic empowerment. India has made a massive contribution to economic development by finding innovative ways from time to time to empower the poor starting with nationalization of banks, priority sector lending by banks, lead bank scheme, establishment of regional rural banks, service area approach, self help group bank linkage programme, introduction of Pradhan Mantri Jan Dhan Yojana etc.