MUNAVVAR TK & ANSIF EK (FINAL BCOM)
MUNAVVAR TK &
ANSIF EK
(FINAL BCOM)
Financial inclusion is the delivery of financial servicesat affordable costs to vast sections of disadvantagedand low income groups.
GOI (2008) defines Financial inclusion as the process ofensuring access to financial services and timelyand adequate credit where needed by vulnerable groupssuch as weaker sections and low income groupsat an affordable cost.
Even after 60 years of Independence a large section of Indian population Unbanked
The Reserve Bank of India (RBI) set up the Khan Commission in 2004 to look into financial inclusion
the term ‘financial inclusion’ was used for the first time in April 2005 in the annual Policy Statement presented by Y.Venugopal Reddy
Financial inclusion first featured in 2005, when it was introduced by K.C. Chakraborthy, the chairman of Indian Bank
Mangalam became the first village in India where all households were provided banking facilities.
WHY FINANCIAL INCLUSION IN INDIA IS IMPORTANT ?
Creating a platform for inculcating the habit of savings
Providing formal credit avenues
Plug gaps and leaks in public subsidies and welfare programs
Initiatives
No frill accounts
Khan commission report in 2004
Mid term review policy of RBI(2005-06)
Nil or very minimum balance to open an account
KISAN CREDIT CARD
Introduced in 1998
Focused on Rural Farmers
Credit Delivery Innovation
Simplifying the procedure for credit needs
Announced by Mr. Yaswanth Sinha, Finance Minister in his Budget speech
NABARD developed model kisan Credit card in 1998
Implemented commercial banks and regional rural banks in their respective areas of operations
Benefits of Kisan Credit cards
Simplified procedure
There is no need to apply for loan every years
helps to buy seeds, fertilizer and other inputs
Repayment is allowed after harvest period
It can withdraw money from any branch
Pradhan Manthri Jan Dhan Yojana (PMJDY)
National mission for financial inclusion
It is announced in 15 august 2014
First independence speech of Mr.Narendra Modi
Formally launched on 28 august 2014
Zero balance a/c at any branch
Special Benefits of PMJDY
Accidental insurance cover of Rs.1.00 lack
No minimum balance required.
Life insurance cover of Rs.30,000/-
Easy Transfer of money across India
After satisfactory operation of the account for 6 months, an overdraft facility will be permitted
Accidental Insurance Cover, RuPay Debit Card must be used at least once in 45 days.
Overdraft facility up to Rs.5000/- is available in only one account per household, preferably lady of the household.
Direct Benefit Transfer (DBT)
Direct Benefit Transfer/Electronic Benefit Transfer(DBT/EBT)
Launched in January 2013
Compels beneficiaries to open a bank a/c
To ensure money under various developmental schemes reaches beneficiaries directly
To avoid bureaucracy
Human less transfer of payment
Business Correspondents
Introduced in January 2006
provide banking facilities in unbanked rural facilities
Business correspondents provides affordability and easy accessibility of banks services
It provides door step delivery of banking services
Focus on cash in cash out transactions
Some other initiatives
Financial literacy program
Simplifies know your customer (KYC) norms and conditions
Financial literacy program
Opening of branches in unbanked rural area
Micro -finance