Role of Banks in Financial Inclusion

Nalini Subbiah

Abstract


Financial inclusion is a tool for combating poverty. It is estimated that globally over two billion people are excluded from access to financial services, of which one third is in India. Access to various financial services enables the poor people to participate in the growth of the economy. Many banks are forced to adopt financial inclusion rather than their own interest. The banks have encountered various problems while adopting financial inclusion Viz. improper repayment, need for additional workforce, more time consumption, heavy work load, high cost etc. The main objectives of this study were to know the measures taken by the banks for financial inclusion, to examine the difficulties involved in the adoption of financial inclusion and also to enhance the extent of financial inclusion. The data required for the study was collected from both primary and secondary sources.  The total numbers of samples were 50.  The study was conducted among the banks in Tiruchendur area of Tamil Nadu. Reserve Bank of India’s vision for 2020 is to open nearly 600 million new customers' accounts. The banks should encourage the people to access banking services by ways of      no frills account, financial inclusion campaign and business correspondent. The government should encourage the banks to adopt financial inclusion by means of financial assistance, advertisement and awareness programme etc. to achieve the aim of 11th plan of Inclusive Growth.

 


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ISSN : 2251-1547