In India, RBI has initiated several measures to achieve greater financial inclusion,such as facilitating no-frills accounts and GCCs for small deposits and credit

1. Presented By :-
VIKASH KUMAR

2. PROMOTING FINANCIAL INCLUSION
"ACESS TO BANKING SERVICES ('NO- FRILLS'
ACCOUNT),
AFFORDABLE CREDIT AND FREE FACE-TO-FACE
MONEY
ADVICE TO DISADVANTAGE AND LOW INCOME
GROUP"

4.  "Financial inclusion is delivery of banking
services at an affordable cost ('no frills'
accounts,) to the vast sections of
disadvantaged and low income group.
Unrestrained access to public goods and
services is the sine qua non of an open and
efficient society. As banking services are in
the nature of public good, it is essential that
availability of banking and payment services
to the entire population without
discrimination is the prime objective of the
public policy."

6. RBI's Policy on 'Financial Inclusion'
 Opening of no-frills accounts
 Relaxation on know-your-customer (KYC) norms
 Opening of branches in unbanked rural centers
 Ensuring reasonableness of bank charges
 Use of technology
--- Still We Failed!
--- Why?

7. ----because
Large Population
Absence of reach and coverage
Delivery Mechanism
High maintenance costs for accounts
Lack of electricity
Many of things

8. What Have We Achieved
Number of No-Frill Accounts – 28.23 million
Number of rural bank branches – 31,727 constituting
39.7% of total bank branches
Number of ATMs – 44,857
Number of POS – 4,70,237
Number of Cards – 167.09 million
Number of Kisan Credit cards – 76 million
Number of Mobile phones–403 million
– out of which 187 million (46%) do not have a
bank account

9. Financial inclusion: Indian Scenario
Scenario In India, almost half the country is unbanked.
 Only 55% of the population have deposit accounts and 9 %
have credit accounts with banks.
 India has the highest number of households (145 million)
excluded from Banking. There was only 1 bank branch per
16,000 people.
 6 lakh villages in India, rural branches of SCBs including RRBs
number 33,495.
contd……

10. Contd..
less than 20% of the population has any kind of life insurance
and 9.6% of the population has non‐life insurance coverage.
 Just 18 % had debit cards and less than 2 percent had credit
cards.
only 45% of the adults in India have access to a bank account.
This figure falls to 27% for rural households with access to any
financial services.
According to RBI statistics, 72% of those earning less than Rs.
50,000 a year lack a bank account. this creates a big challenge
for banking coverage.

11. Difficulties in FI Implementation
 Transaction cost too high
 Appropriate business model yet to evolve
 BC model too restrictive
 Limitation of cash delivery points
 Lack of Interest / Involvement of Big Technology
Players

12. Report of the Financial Inclusion in India
(Chairman: Dr. C. Rangarajan, 2008)
 Setting up of a National Rural Financial Inclusion Plan
with a target of providing access to financial services to
at least 50 per cent of excluded rural households by
2012 and the remaining by 2015
 Encouraging SHGs in excluded regions, measures for
urban micro-finance and separate category of MFIs
 RRBs to extend banking services to unbanked areas
 Use of PACS and other co-operatives as BCs and to
adopt group approach for financing excluded groups

13. Reserve Bank of India's vision for 2020 is to open nearly 600
million new customers' service them through a variety of
channels by leveraging on IT.

14. Major Milestones
1969 : Nationalization of Banks
1975 : Establishment of Regional Rural Banks
1982 : Establishment of NABARD
1992 : Launching of the SHG – Bank Linkage
1998 : NABARD sets a goal for linking one million SHGs by 2008
2000 : Establishment of SIDBI Foundation for Microcredit
2005 : One million SHG linkage target achieved 3 years ahead of date
2006 : Committee on Financial Inclusion
2007 : Proposed bill on microfinance regulation introduced in parliament
2008 : Number of Kisan Credit cards – 76 million
2009 : No.of rural bank branches – 31,727 constituting 39.7% of total
bank branches,
2010 : Increased Rs.100 crore each for Financial Inclusion and Financial
Inclusion Technology.
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16. CONCLUSION
• Financial Inclusion is a win-win situation for the
financially excluded, the Corporates, the Govt. and
the Banks.
• Bankers can support by financing the Agri products
including their preservation and sales.
• Corporates can sell / market their products to the
large untapped rural markets.