CSI IT2020 : IT CHALLENGES FOR SMART INDIA , organised by CSI Mumbai Chapter on Jan 21,22 2016 in association with Department of Physics, University of Mumbai.Sahil Malik spoke about Financial inclusion

1. Financial Inclusion
Sahil Malik
DGM, SEBI & Member of Faculty, NISM

2. Few Figures before we start
• Number of Indians having Mobile Phones: 811 Millions (68% of total Indian
Population)
• Number of Indians having access to Banks: 211 Millions (Just 18% of total
Population)
Source: Business Standard

3. Financial Inclusion(FI)
Financial Inclusion is the process of ensuring access to appropriate
financial products and services needed by all sections of the society in
general and vulnerable groups such as weaker sections and low income
groups in particular at an affordable cost in a fair and transparent
manner by mainstream institutional players

4. Who are these people
• Underprivileged section in rural and urban areas like, Farmers,
small vendors, etc.
• Agricultural and Industrial Laborers
• People engaged in un-organised sectors
• Unemployed
• Women
• Children
• Old people

5. Importance of FI
• Mobilizing Savings into productive investments
• Enhancing Financial Literacy of the vulnerable and weaker sections
• Cost Effective delivery of Financial Products.
• Promotes Competition and helps provide market based incentives
delivery of sustainable financial access.

6. Financial Inclusion/Financial Literacy
• Twin Aspects of Financial Inclusion Financial Inclusion and Financial
Literacy are twin pillars. While Financial Inclusion acts from supply
side providing the financial market/services what people demand,
Financial Literacy stimulates the demand side – making people aware
of what they can demand.

7. Facilities Identified Under FI
Financial Inclusion
Credit
Savings
Payment
and
remittance
Financial
Advisory
Mortgage
Insurance
Investments

8. Steps by Government in this area
• Pradhan Mantri Jan Dhan Yojana (People’s Wealth Scheme)
Objectives
• To bring poor financially excluded people into banking system(both Rural and
Urban areas)
• Raise of Indian Economy.
• To decrees corruption in Govt subsidy schemes.
• Direct Transfer of Benefits
• Digital India.

9. Features of JDY
• Account can opened with zero balance.
• Not required to maintain any minimum balance.
• ATM card can be issued.
• Accident insurance up to `100,000.
• Medical insurance cover of `30,000.
• ` 5000 of overdraft available only after 6 months.

10. Facts about PMJDY
• Number of Accounts Opened : Over 13 crore
• Amount Deposited: Over 9000 Crores
• Ratio of Male/Female: 49:51
• Ratio of Rural/Urban: 59:41
• As on Jan 2015

11. Initiatives of RBI
• No-Frill Accounts
• Overdraft in Saving Bank Accounts
• Simplification of Savings Bank Account Opening Form
• Financial Literacy Program •
• Overcoming language barriers
• Kisan Credit Cards (KCCs)
• Opening of branches in unbanked rural locations
• Rural Infrastructure Development
• SHG Bank-Linkage Programme
• Business Correspondents (BCs)

12. Initiatives by SEBI
• Saral Trading and Demat Account
• No Frill Demat Account
• E- KYC
• Use of Adhar Card for KYC purpose
• Additional fee to Mutual Funds for the money raised from cities
beyond Top 15.
• Acceptance of Cash for Mutual Fund transaction
• Common KYC
• Distributors of Specific Class

13. Role of Technology
• Over 6 lakh villages in India and not possible to reach the model of
Brick and Mortar. Hence Virtual office through technology
• Electronic KYC
• Use of Aadhar
• RuPay Debit Card/Smart Cards
• Branch on Wheels

14. Thanking You