Financial inclusion aims to provide affordable banking services to disadvantaged and low-income groups through access to financial products and services like savings, loans, and insurance. It is important for creating savings habits, providing formal credit, and ensuring public subsidies reach the poor. The RBI has taken steps like no-frills accounts, business correspondents, and EBT to support financial inclusion. While opportunities include balanced growth and increased financial strength for banks and individuals, challenges include the spatial distribution of services, overcoming poverty levels, and bankers' aversion to inclusion. Financial inclusion can alleviate poverty and support gradual economic development in India.

1. FINANCIAL INCLUSION -
Opportunities and Challenges
Presented By : JA. VETH PRASATH

2. Financial Inclusion
 Financial inclusion is delivery of banking services at an affordable cost
to the vast section of disadvantaged and low income groups
 Financial inclusion includes accessing of financial products and services
such as savings, loans, insurance, credit, payment
 Some of the major efforts include - nationalization of banks, building
branch network of scheduled commercial banks, co-operatives and
regional rural banks

3. Why FINANCIAL Inclusion in India is Important?
 Creating a platform for inculcating the habit to save money - The
lower income category has been living under the constant shadow of
financial duress mainly because of the absence of savings.
 Providing formal credit avenues - Availability of adequate and
transparent credit from formal banking channels shall allow the
entrepreneurial spirit of the masses to increase outputs and prosperity
in the countryside.
 Plug gaps and leaks in public subsidies and welfare programmes - A
considerable sum of money that is meant for the poorest of poor does
not actually reach them.

4. Steps taken by RBI to support FINANCIAL
inclusion?
 Initiation of no-frills account - These accounts are expected to provide
a low-cost mode to access bank accounts.
 Banking service reaches homes through business correspondents -
Business Correspondents provide affordability and easy accessibility to
unbanked population armed with suitable technology
 EBT – Electronic Benefits Transfer - This “human-less” transfer of
payment provides better benefits and relief to the beneficiaries while
reducing government’s cost of transfer and monitoring.

5. Opportunities of Financial Inclusion:
 Balanced Growth - People had vast resources in their hands by availing
banking services
 Increase financial strength of banks - People from even the remote
areas open bank accounts. The business of bank flourish due to good
mobilization of funds.
 Removes poverty - Everybody will be given access to formal financial
services the individual can borrow loans for business of education or
any other purpose.

6. Opportunities of Financial Inclusion:
 Financial transaction made easy – using the option of electronic fund
transfer helps in easy and speedy way to fund transfer
 Safe savings - People will have savings along with other allied services
like insurance cover, entrepreneurial loans, safety lockers, payment and
settlement facility
 Increase in GDP - Boosting up business opportunities will increase
Gross Domestic Product which will inflate the national income

7. Challenges of Financial Inclusion:
 Spatial Distribution of Banking Services
 Poverty levels are having direct relationship with the progress of
financial inclusion
 Overcoming Bankers Aversion for Financial Inclusion

8. Conclusion:
 Financial inclusion is a great step to alleviate poverty in India.
 Financial service provider should learn more about the consumers and
new business models to reach them
 India can withstand the global financial crisis and have a gradual
economic development through financial inclusion