scholarly journals PROGRESS OF FINANCIAL INCLUSION THROUGH FIPs OF SCHEDULED COMMERCIAL BANKS

2017 ◽  
Vol 5 (8) ◽  
pp. 146-157
Author(s):  
Mohana Krishna Irrinki ◽  
Kuberudu Burlakanti
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Banking Sector ◽  
Credit Cards ◽  
Vital Role ◽  
Financial Inclusion ◽  
Inclusive Growth ◽  
Continuous Growth ◽  
Low Income Groups ◽  
Bank Accounts

All the stakeholders of the economy had identified the need and importance of financial inclusion in the overall development of any country. Banking sector plays a very vital role in the success of financial inclusion. Government and RBI had formulated various programs, schemes and financial services for the financial betterment of the low income groups. Various initiations were taken in implementing financial inclusion and banks were asked to set self-regulated targets through financial inclusion plans through which the unbanked villages across the country were assigned to various banks and these banks were asked to bring all the unbanked segments into the banking fold. The paper aims at the evaluation of financial inclusion through the various parameters considered for the growth of financial inclusion. The banks through the efforts of their branches and Business Correspondents have seen the continuous growth in opening the bank accounts, issue of Kisan Credit Cards & General Credit Cards and the volume and value of transactions in the bank accounts. Financial Inclusion Plans of the banks are helping a lot in moving towards inclusive growth.

scholarly journals The Nexus between Mobile Money Regulation, Innovative Technology and the Promotion of Financial Inclusion in Zimbabwe

2021 ◽  
Vol 24 ◽  
pp. 1-33
Author(s):  
Howard Chitimira ◽  
Elfas Torerai
Keyword(s):  
Low Income ◽  
Rural Areas ◽  
Financial Services ◽  
Banking Sector ◽  
Regulatory Framework ◽  
Financial Inclusion ◽  
Innovative Technology ◽  
Technological Innovations ◽  
Mobile Money ◽  
The Poor

The advent of mobile money innovations has given people in rural areas, informal settlements and other poor communities an opportunity to participate in Zimbabwe's mainstream financial economy. However, the technology-driven money services have presented some challenges to the traditional banking sector in general and the regulation of financial services in particular. Firstly, most mobile money services are products of telecommunication corporations, which are not banks. Telecommunication companies use their network reach to provide mobile money services via mobile devices at a cheaper cost than banks across the country in Zimbabwe. As such, banks face unprecedented competition from telecommunications companies that are venturing into financial services. It also appears that prudential regulation of banks cannot keep up with the fast pace at which technological innovations are developing and this has created a disjuncture between the regulation and the use of technological innovations to promote financial inclusion in Zimbabwe. The Banking Act [Chapter 24:20] 9 of 1999, the Reserve Bank of Zimbabwe Act [Chapter 22:15] 5 of 1999 and the National Payment Systems Act [Chapter 24:23] 21 of 2001 have a limited scope in terms of the regulation of mobile money services in Zimbabwe. The Ministry of Finance and Economic Development launched the National Financial Inclusion Strategy (NFIS) 2016-2020 to provide impetus to the financial inclusion of the poor, unbanked and low-income earners in Zimbabwe. However, the NFIS appears to push more for bank-led financial inclusion than it does for innovation-driven initiatives such as mobile money services. This article highlights the positive influence of mobile money services in improving financial inclusion for the poor, unbanked and low-income earners in Zimbabwe. The article also seeks to point out gaps and flaws in the financial services regulatory framework that may limit the potential of mobile money services to reach more people so that they actively participate in the Zimbabwean economy. It is submitted that the Zimbabwean mobile money services regulations and the financial regulatory framework should be carefully amended in line with the recent innovations in mobile money to adequately regulate the use of mobile money services and innovative technology to address the financial exclusion of the poor, unbanked and low-income earners in Zimbabwe.

IMPACTS OF FINANCIAL INCLUSION ON POVERTY AND INCOME INEQUALITY IN DEVELOPING ASIA

2021 ◽  
pp. 1-17
Author(s):  
WARATTAYA CHINNAKUM
Keyword(s):  
Developing Countries ◽  
Income Inequality ◽  
Low Income ◽  
Financial Services ◽  
Trade Openness ◽  
Generalized Method Of Moments ◽  
Principal Component ◽  
Financial Inclusion ◽  
Poor Households ◽  
Low Income Groups

This study investigates the impacts of financial inclusion on poverty and income inequality in 27 developing countries in Asia during 2004–2019 based on a composite financial inclusion index (FII) constructed using principal component analysis (PCA). The generalized method of moments (GMM) was employed for the estimation. The results show that financial inclusion can influence the reduction in both poverty and income inequality. The empirical findings also reveal the contribution of such control variables as economic growth in decreasing income disparity and trade openness in helping improve the standard of living of poor households despite its tendency to co-vary with income inequality. The present empirical evidence supporting the role of financial inclusion in reducing poverty and income inequality in developing countries has led to a policy implication that financial sector development should focus on the availability, usage, and depth of credit to cover all poor households or low-income groups to help improve their access to financial services, enable them to increase their income, and reduce the income gap between poor and rich households.

FINANCIAL INCLUSION THROUGH MICRO FINANCE

2021 ◽  
pp. 1-4
Author(s):  
P. Nagarajan
Keyword(s):  
Developing Countries ◽  
Low Income ◽  
Rural Areas ◽  
Banking Sector ◽  
Financial Inclusion ◽  
Vulnerable Groups ◽  
Poor People ◽  
Resource Base ◽  
Income Groups ◽  
Low Income Groups

Finance has become an essential part of an economy for development of the society as well as economy of nation. World leaders are embracing nancial inclusion at an accelerating pace, because they know that an inclusive nancial system that responsibly reaches all citizens is an important ingredient for social and economic progress for emerging markets and developing countries. Despite the political tailwind, half of the working-age adults globally – 2.5 billion people – remain excluded from formal nancial services. Instead, they have to rely on the age-old informal mechanisms of the moneylender or pawnbroker for credit or the rotating savings club and vulnerable livestock for savings. The pandemic has had a momentous impact on economies and societies around the world. At the same time, it has shown that, with the right approach, it is possible to protect and safeguard the economy. . Through Financial inclusion we can achieve equitable and inclusive growth of the nation. Financial inclusion stands for delivery of appropriate nancial services at an affordable cost, on timely basis to vulnerable groups such as low income groups and weaker section who lack access to even the most basic banking services. It helps in economic development as it widens the resource base of the nancial system by developing a culture of savings among large segment of rural population. Further, nancial inclusion protects their nancial wealth and other resources in exigent circumstances by bringing low income groups within the perimeter of formal banking sector. Financial inclusion engages in including poor people in the formal banking industry with the intention of securing their minimal nances for future purposes. Micronance has become a medium of extending nancial services to unbanked sections of population. Micronance is banking the unbankables, bringing credit, savings and other essential nancial services within the reach of millions of people who are too poor to be served by regular banks, in most cases because they are unable to offer sufcient collateral. In a country like India with almost 30% (more than 360 million) people still below poverty line and according to latest census gures, more than 70% or 840 million people living in rural areas with little or no access to formal banking and other nancial services, micronance has a big role to play in order to bridge this gap. The Micro Finance Institutions occupies key position in nancial inclusion through micro nance where the exclusion. In developing countries, the growth of micronance institutions (MFIs) which specically target low income individuals are viewed as potentially useful for promotion of nancial inclusion. Even though MFIs at present, mainly offer only credit products; as they grow, they are likely to expand their product range to include other nancial services.

scholarly journals BANKING SECTOR ORIENTED FINANCIAL INCLUSION IN INDIA: A LONG TERM PERSPECTIVE

2020 ◽  
pp. 42-59
Author(s):  
Sana Pathan ◽  
Archana Fulwari
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Financial Inclusion ◽  
Inclusive Growth ◽  
Long Run ◽  
Reserve Bank ◽  
The Government ◽  
Improve Access ◽  
Reserve Bank Of India

Financial Inclusion is an emerging concept. The objective of the government behind 100 percent Financial Inclusion is to have inclusive growth in India. Several initiatives have been taken by the Government of India and the Reserve Bank of India to improve access to financial services. To measure the effectiveness of these initiatives there is need to measure the extent of Financial Inclusion. Financial Inclusion can be measured by gauging the progress in access to and usage of a range of products and services of financial institutions over time. The present study sought to propose an index to measure the extent of banking sector oriented Financial Inclusion in India over a period of time rather than a cross-section study which has been the focus of many a studies. The study used more specific indicators of banks-centric financial inclusion dimensions to gauge the long run trend in Financial Inclusion in India. The results indicate that there is much improvement in Financial Inclusion in India since the implementation of financial sector reforms.

scholarly journals CBO Based Microfinancing in Pakistan: Comparative Analysis of Akhuwat Foundation and Kashf Foundation

2021 ◽  
Vol VI (III) ◽  
pp. 9-18
Author(s):  
Muhammad Salman ◽  
Sana Malik ◽  
Fariha Tariq
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Poverty Alleviation ◽  
Vital Role ◽  
Living Standard ◽  
Poor People ◽  
Mutual Support ◽  
Low Income Groups ◽  
The Relationship ◽  
Depth Interviews

Poverty is a risk to harmony, which results in the dismissal of human rights. Microfinance is a tool that is famous across the world as a solution to alleviate poverty. Through this tool, lowincome households can have permanent access to a range of high-quality and affordable financial services that are offered by a range of retail providers. Community-based organizations, commonly known as "CBO", play a vital role in providing microfinance to the needy group of people, which determined the relationship between microfinance and poverty alleviation. This research presents a comparative study between Akhuwat Foundation and Kashf Foundation microfinance models for providing housing finance to low-income groups. A qualitative approach has been applied to determine the relationship between microfinance and poverty alleviation. In-depth interviews are conducted with working staff and borrowers of Akhuwat Foundation and Kashf Foundation (microfinance organizations). The research concludes that both organizations strive to alleviate poverty and to enhance the living standard of low-income people through mutual support in the system. The study also suggests that these organizations should need to emphasize more on the diversified needs of the poor people and must aim to serve the most extremely poor strata of the population.

scholarly journals FINANCIAL INCLUSION AND WOMEN EMPOWERMENT: A GENDER PERSPECTIVE

2018 ◽  
Vol 6 (5) ◽  
pp. 229-237
Author(s):  
Bincy George ◽  
K.T. Thomachan
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Financial Inclusion ◽  
Women Empowerment ◽  
Bank Account ◽  
Banking Services ◽  
Income Groups ◽  
The Social ◽  
Social And Economic Development ◽  
Low Income Groups

This paper examines women empowerment associated with financial inclusion. Financial inclusion is delivery of banking services at an affordable cost to the vast sections of disadvantaged and the low-income groups. The various financial services include access to saving, credit, insurance, bank account etc. The access to financial services helps women in their social and economic development. It is noted that access to financial service through financial inclusion do have impact upon the social and financial empowerment of women leading to their overall empowerment.

A Study on Role of Financial Inclusion on Regional rural Banks with Reference to Kerala Gramin Bank

2021 ◽  
pp. 115-119
Author(s):  
Jithu George ◽  
Rashmi. R
Keyword(s):  
Correlation Analysis ◽  
Low Income ◽  
Financial Services ◽  
Secondary Data ◽  
Financial Inclusion ◽  
Vulnerable Groups ◽  
Easy Access ◽  
Dependent Variables ◽  
Low Income Groups

In simple words financial inclusion is defined as “the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost” (Rangarajan, 2008). The main aim of financial inclusion (FI) is to provide easy access to financial services to the underprivileged population of country. It is an attempt to raise the underprivileged population by making available of finance and there by achieving inclusive growth. This paper studies the financial inclusion of regional rural banks in Kerala. Both primary and secondary data used for the study.197 respondent’s data were collected through questionnaire and surveys. The research methodology used in this study was correlation analysis and descriptive statistics. The result of the correlation analysis shows there is positive correlation between independent and dependent variables also the peoples were aware about the inclusions that introduced and newly adapted by the banks. So, the aim of this study is to understand the various financial inclusion measures taken and its impact on creating awareness, benefits and better services to its customers by KGB.

Impact of Financial Inclusion on Indian Economy

Think India ◽  
2019 ◽  
Vol 22 (3) ◽  
pp. 563-569
Author(s):  
BHARTI
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Poverty Alleviation ◽  
Fortune 500 ◽  
Financial Inclusion ◽  
Inclusive Growth ◽  
Indian Economy ◽  
The World ◽  
Banking Institution ◽  
The Impact

Financial inclusion is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society. The term financial inclusion has evolved since late 2000 and it’s directly correlated to poverty. More and more Indian companies are trying to enter in the list of fortune 500 and one of our Indian entrepreneurs appears in the list of the top five richest persons of the world. Financial inclusion has become an evolving paradigm of economic growth that plays very significant role in poverty alleviation. The main objective of the study is to analyze the impact of financial inclusion in the growth of Indian economy and the initiatives taken by the banking institution in India to attain inclusive growth.

scholarly journals PERCEPTION TOWARDS BC/BF MODEL AS A SUCCESSFUL AGENT FOR FINANCIAL INCLUSION

2020 ◽  
pp. 1-3
Author(s):  
Manoj Xavier
Keyword(s):  
Economic Growth ◽  
Low Income ◽  
Financial Services ◽  
Critical Role ◽  
Financial System ◽  
Financial Inclusion ◽  
Inclusive Growth ◽  
Financial Exclusion

The concept financial inclusion, the delivery of financial services at affordable costs to low-income segments of society, is a realistic strategy for accelerated economic growth, and plays critical role in achieving inclusive growth. Non accessibility, non-affordability and non availability of formal financial services results in financial exclusion and thereby, vulnerable sections cannot use their own funds in an underdeveloped financial system leading to high cost credit from informal sources and the individuals also pay higher charges for basic financial services. In India the RBI and Government have launched several financial inclusion measures and programs over the last two decades. Among these, BC/BF Model is one of the successful initiatives. This study is an attempt to know the perception towards BC/BF model as a successful agent for financial inclusion among the beneficiaries

scholarly journals Financial Inclusion in India

2020 ◽  
Vol 19 (2) ◽  
pp. 37-51
Author(s):  
Simon Thermadam
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Financial Inclusion ◽  
Vulnerable Groups ◽  
Bank Account ◽  
Banking Services ◽  
Marginalised Groups ◽  
Low Income Groups ◽  
The Government ◽  
Major Factors

Financial inclusion, the process of ensuring access to financial services along with timely and adequate credit where needed by vulnerable groups, helps the weaker sections and low-income groups in different ways. With an active intervention of the government, a large number of the unbanked segments of the society could be included in various financial services in the last few years. As a result, the number of bank accounts has been increasing. Members from the marginalised groups, women, etc. are some of the direct beneficiaries of financial inclusion. By utilizing micro data of World Bank, ‘Global Financial Inclusion (Global Findex) Database 2017, the author observes that socio-economic factors, like educational level, age group, and employment have an important role in determining one’s access to banking services. But some problems arise when the account holders do not utilize the banking facilities properly, especially when a majority stays idle. Lack of money is still considered one of the major factors for a lack of interest in holding a bank account. The ownership of bank account by other members in the same family also stops many from opening a bank account. The government has to take active measures to solve these issues. Moreover, the remaining unbanked sections of the society have to be included in the financial services, by solving the various reasons cited.

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