One of the topics being discussed in the banking world is 'Financial inclusion'. Financial inclusion aims at providing banking services to all in the most fair, transparent, & equitable manner at an affordable cost.
Much of the society today has been divided into 3 distinct parts- First come the elite who are provided with the best of financial instruments. In the extreme ridge come people who are denied all the services. In the middle come people who mostly use banking services for withdrawing and depositing money.
According to Shri. V. Leeladhar, Deputy Governor, RBI, Financial exclusion could lead to severe economic problems starting from higher incidences of crime to increase in unemployment levels.
Just having an ordinary "no frills" current/savings account is not what financial inclusion is all about. Financial inclusion should aim at providing the essential services to the needy with the necessary information so that a person can decide what is the right choice for him/her. For example, villages could have electronic ATM's which could give instructions in local dialect and which would also offer facilities for depositing money as well.
Banks when opening business in rural areas should forget their competitive restrictions and allow people to withdraw from any bank whichever is closer. Bank drawing limits at such areas should be revised. Much of the society today has been divided into 3 distinct parts- First come the elite who are provided with the best of financial instruments. In the extreme ridge come people who are denied all the services. In the middle come people who mostly use banking services for withdrawing and depositing money.
According to Shri. V. Leeladhar, Deputy Governor, RBI, Financial exclusion could lead to severe economic problems starting from higher incidences of crime to increase in unemployment levels.
Just having an ordinary "no frills" current/savings account is not what financial inclusion is all about. Financial inclusion should aim at providing the essential services to the needy with the necessary information so that a person can decide what is the right choice for him/her. For example, villages could have electronic ATM's which could give instructions in local dialect and which would also offer facilities for depositing money as well.
Courtesy- Aathira G. Krishna, MBA 1st year, Pondicherry University
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