This document discusses financial inclusion, credit widening, and credit deepening. It defines financial inclusion as providing access to affordable financial services like banking, credit, insurance to disadvantaged and low-income groups. It summarizes schemes launched in India to promote financial inclusion like PMJDY and steps taken by RBI like appointing business correspondents. Financial deepening is defined as offering a wider range of financial products and services from various financial institutions. Financial widening means accumulating financial assets at a faster pace than non-financial wealth.

1. Credit Inclusions-credit
widening and credit
deepening
AJITT G
Department of Agricultural Extension
Kerala Agricultural University
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2. Financial inclusion
 Fi is the delivery of services at affordable cost to the vast section of
the disadvantaged and low income group
 Banking, Easy credit, Investment opportunity, Insurance
Importance
 Creating a platform to inculcating the habit of save money
 Providing formal credit
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3. Definitions
 FI may be 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 affordable cost (The committee on Financial Inclusion,
Chairman: Dr.C.Rangarajan)
or
 FI broadly defined, refers to universal access to a wide range of
financial services at a reasonable cost.These include not only
banking products but also other financial services such as
insurance and equity products (The committee on Financial sector
reforms, Chairmam: Dr. Raguram G Rajan).
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4. Schemes launched for financial
inclusion
 SWABHIMAN - 2010
 Extent banking services to all unbanked areas with a population
2000 or more
 PMJDY(Pradhan Manthri Jan Dhan Yojana)-2014
 “Mera kata bhagya vidhatha”
 Zero balance account-Rupay debit card
 1 lakh accidental recovery- usage once in 90 days
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5. Steps taken by RBI to support financial
inclusion
1.BSBDA(Basic saving bank deposit account)
 No fill account
 No limit on the number of deposits-restriction of withdrawal to 4
2.Appointing business correspondents and business facilitators
 BC- Merchant bankers- provides banking services
 BF- create awareness about banking services
3.Opening branches in un banked rural areas
4.Relaxation in KYC guideline
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6. Financial deepening
 FD :offering a wider range of financial goods and services with
different maturities, risk and returns from a variety of financial
intermediaries
ie, Increasing provision of financial services
Indicators of FD: 1.Financial institutions and their services across
levels of society
2.Growth per capita of real cash in hand
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7. Financial widening
 FW : the accumulation of financial assets at a faster pace than
the accumulation of non financial wealth
 ie, A credit spread is the difference in yield between two
bonds that are the same in all aspect expect for the credit.
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