Research Inventy : International Journal of Engineering and Science is published by the group of young academic and industrial researchers with 12 Issues per year. It is an online as well as print version open access journal that provides rapid publication (monthly) of articles in all areas of the subject such as: civil, mechanical, chemical, electronic and computer engineering as well as production and information technology. The Journal welcomes the submission of manuscripts that meet the general criteria of significance and scientific excellence. Papers will be published by rapid process within 20 days after acceptance and peer review process takes only 7 days. All articles published in Research Inventy will be peer-reviewed.
IOSR Journal of Business and Management (IOSR-JBM) is an open access international journal that provides rapid publication (within a month) of articles in all areas of business and managemant and its applications. The journal welcomes publications of high quality papers on theoretical developments and practical applications inbusiness and management. Original research papers, state-of-the-art reviews, and high quality technical notes are invited for publications.
Financial Inclusion in India – A Road Map towards Growth of Initiatives and A...iosrjce
Finance has become an essential part of an economy for development of the society as well as
economy of nation. For, this purpose a strong financial system is required in not only in under-developed
countries and developing countries but also developed countries for sustainable growth. Through Financial
inclusion we can achieve equitable and inclusive growth of the nation. Financial inclusion stands for delivery of
appropriate financial services at an affordable cost, on timely basis to vulnerable groups such as low income
groups and weaker section who lack access to even the most basic banking services. In this paper, the
researcher attempts to understand financial inclusion and its importance for overall development of society and
Nation’s economy. This study focuses on approaches adopted by various Indian banks towards achieving the
ultimate goal of financial inclusion for inclusive growth in India and analyses of past years progress and
achievements. The relevant data for this study has been collected with the help of from various Research
journals, Articles, reports of RBI, reports of NABARD and online resources
Perceptions of People from Economically Backward Section towards Financial In...iosrjce
Financial Inclusion aims to provide the financial services to the people from economically backward
section of the society. The objective is to assist them in their economic improvement and achieve the sustainable
growth. In this study, an effort has been made to examine the views of the people from economically backward
sectionregarding the important aspects of financial inclusion. Views of 53 respondents are analyzed. ChiSquare,
nonparametric statistical technique, has been used to examine whether the views of the different
categories of the respondents about the important aspects of financial inclusiondiffer. Based on the views of the
respondents we found that bank employees are encouraging people from economically weaker sections to open
their accounts and people also found these accounts useful. Respondents are also of the view that education
level, income level, age and period of association of the account holder with the bank directly affects the quality
of services rendered. To further enhance the utility of the scheme and ensure its success, there is a need to
provide training to bank staff so that the quality of services rendered is not differentiated between different
categories of customers. Further, whereas this study pertains to the views of the economically weaker section,
there is a need to examine the views of bankers also, so that this scheme can be made more useful.
IOSR Journal of Business and Management (IOSR-JBM) is an open access international journal that provides rapid publication (within a month) of articles in all areas of business and managemant and its applications. The journal welcomes publications of high quality papers on theoretical developments and practical applications inbusiness and management. Original research papers, state-of-the-art reviews, and high quality technical notes are invited for publications.
Financial Inclusion in India – A Road Map towards Growth of Initiatives and A...iosrjce
Finance has become an essential part of an economy for development of the society as well as
economy of nation. For, this purpose a strong financial system is required in not only in under-developed
countries and developing countries but also developed countries for sustainable growth. Through Financial
inclusion we can achieve equitable and inclusive growth of the nation. Financial inclusion stands for delivery of
appropriate financial services at an affordable cost, on timely basis to vulnerable groups such as low income
groups and weaker section who lack access to even the most basic banking services. In this paper, the
researcher attempts to understand financial inclusion and its importance for overall development of society and
Nation’s economy. This study focuses on approaches adopted by various Indian banks towards achieving the
ultimate goal of financial inclusion for inclusive growth in India and analyses of past years progress and
achievements. The relevant data for this study has been collected with the help of from various Research
journals, Articles, reports of RBI, reports of NABARD and online resources
Perceptions of People from Economically Backward Section towards Financial In...iosrjce
Financial Inclusion aims to provide the financial services to the people from economically backward
section of the society. The objective is to assist them in their economic improvement and achieve the sustainable
growth. In this study, an effort has been made to examine the views of the people from economically backward
sectionregarding the important aspects of financial inclusion. Views of 53 respondents are analyzed. ChiSquare,
nonparametric statistical technique, has been used to examine whether the views of the different
categories of the respondents about the important aspects of financial inclusiondiffer. Based on the views of the
respondents we found that bank employees are encouraging people from economically weaker sections to open
their accounts and people also found these accounts useful. Respondents are also of the view that education
level, income level, age and period of association of the account holder with the bank directly affects the quality
of services rendered. To further enhance the utility of the scheme and ensure its success, there is a need to
provide training to bank staff so that the quality of services rendered is not differentiated between different
categories of customers. Further, whereas this study pertains to the views of the economically weaker section,
there is a need to examine the views of bankers also, so that this scheme can be made more useful.
Analysis of the Level of Financial Literacy and Financial Inclusion among Rur...iosrjce
Financial Literacy is the base and primary step for financial inclusion. It provides knowledge on
merits and demerits of financial products and services, based on that an individual can select the right product
which suits his/her needs. In the words of Shri Pranab Mukherjee, (2013) financial literacy refers “Financial
literacy and education plays a vital role in financial inclusion, inclusive growth and sustainable prosperity”. It
ensures that financial services are to be reached to weaker sections or unreached sections of the society. All the
initiatives should aim at achieving financial inclusion through financial literacy.
For improving awareness of financial literacy, several schemes were implemented by the Reserve Banking
of India, the Security and Exchange Board of India, Insurance Regulatory Development Authority, Pension
Fund Regulatory and Development Authority (PFRADA). These bodies are engaged in various financial
education programs in improving financial literacy thereby achieving financial inclusion. Various strategies
are also being implemented for the improvement of financial literacy in India. These include introducing
financial education in school curriculums especially government schools in rural areas, and financial-literacy
training programs set up by commercial banks in urban and semi-urban areas. Village adoption programs were
also established by educational institutions in rural areas. There is a strong concern for banks to arrange
regular campaign through media and road shows to spread awareness about financial inclusion and financial
literacy. The main objective of this study is to know the level of financial literacyamong rural households in
Krishna District, Andhra Pradesh and banking penetration in selected mandals.
Financial inclusions a pavement towards the future growthTapasya123
India’s economic growth rates higher than most developed countries in recent years, a
majority of the country’s population still residue unbanked. Financial Inclusion is a relatively
new socio-economic concept in India that aspire to change this dynamic by providing
financial services at affordable costs to the underprivileged, who might not otherwise be
aware of or able to afford these services. Global trends have revealed that in order to achieve
inclusive development and growth, the expansion of financial services to all sections of society
is of utmost importance. As a whole, financial inclusion in the rural as well as financially
backward pockets of cities is a win-win opportunity for everybody involving – the
banks/NBFC’s intermediaries, and the left-out urban population. Banks will handle core
infrastructure and services while intermediaries known as Business Correspondents (BC’s)
will be the executors and act as the face of these banking & financial institutions in dealing
with end-users. Therefore, it is assumed that financial inclusion can initiate the next
revolution of growth and prosperity. In the 21st century, India has been pulling all the right
levers to advance financial inclusion and economic citizenship by channelling its own
transactions to lubricate the system. India’s journey towards economic ascension relies on
how the 65% unbanked population of India (conservative 2012 estimate by World Bank) is
enabled with financial infrastructure.
Indian agriculture sector experiences vicious circle of poverty which decelerate economic growth. Financial exclusion is one of the main reason of it. In India marginals and weaker sections are excluded from main stream of the economy. To achieve sustainable development, all sections of the people need to be come into main stream. This study is an attempt to understand the concept of financial inclusion, financial inclusion in India and micro finance. RBI defines “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”. The present study also tries to understand how micro finance lending facilitates the acceleration of financial inclusion. Micro finance lending is a strong weapon of financial inclusion. Micro credit provided by banks emerged as a major policy tool of financial assistance in the rural credit, particularly to the poor sections of the society. Micro finance by providing small loans and savings facilities to those who have been excluded from other formal services, acting as a key strategy for reducing poverty and discrimination.
Inclusive development means empowerment of weaker sections, SC/STs and women. In this context “financial inclusion “ owns its significance.
This presentation discusses the causes of Andhra Pradesh crisis, how it all started and the possible after-effects. It also examines how the Indian MFIs and the government should respond post this crisis. The presentation concludes with reactions from the clients.
A Little World: Facilitating Safe and Efficient M-Banking in Rural IndiaAshley Metz
The initiative is led by a private sector organization, A Little World (ALW) and its sister entity, a non-profit organization, ZERO Microfinance and Savings Support Foundation (ZMF). ALW and ZMF act as intermediaries between rural communities at one end, and mainstream financial institutions and the government at the other end. ALW offers a secure, low‐cost technology driven delivery platform for financial services through special mobile phones that store and help manage a vast amount of customer bank account data, authenticates account holders through photo and biometric identification and allows access to the bank accounts as Point of Service terminals. Since its pilot project in 2006, ALW and ZMF have rapidly grown and are now present in 22 states, with over four million rural customers, 8,314 points of presence and an average of 25,000 new account openings every day.
After the nationalization of banks, the financial sector has become an important factor in reducing poverty, increasing employment and increasing economic growth of the country. But this sector has not been able to contribute to its utmost because of its unawareness about formal financial institutions among certain sectors of society. Those sectors are mainly the rural population of the country who are illiterate and who are unaware of the facilities provided by the Government of India in the field of finance which can help them maintain their income in an efficient way and introduce them to the investment schemes that are coming up to manage their income properly. Financially excluded people mostly include rural poor, low-income underprivileged people. Some of the authors carried out a survey in few states of India because these states have well-developed financial facilities available, but still there is a need for financial inclusion services in some areas because the available services are not utilized by the general public. For this reason, they went on and asked relevant questions about why the people are not interested in approaching formal financial institution and whether they are aware of these services and facilities or not. The data were collected and reported in a systematic manner. This author focused on whether the financial inclusion has really been implemented in the regions which the banks claimed to be completely financially inclusive. Survey of researchers concluded that more than half of the population from rural India are unaware of the financial facilities and services provided by formal institutions. Our empirical focus is on financial literacy that is needed to increase financial inclusion in rural sectors of India. The literature review done talks about the studies done by various researchers in this field and the strategies and approaches adopted by the government, RBI and NGOs to spread the awareness in order to involve them in contributing their part to the economic growth of the country. A detailed study is done by means survey by the help of a questionnaire and the data collected are worked on with the help of statistical tools which ultimately gave us the relation between various parameters considered for financial inclusion. This analysis and interpretation gave us the relation between financial literacy and financial inclusion and we were able to conclude that financial literacy has a role to play in the process of financial inclusion.
India’s economic growth rates higher than most developed countries in recent years, a
majority of the country’s population still residue unbanked. Financial Inclusion is a relatively
new socio-economic concept in India that aspire to change this dynamic by providing
financial services at affordable costs to the underprivileged, who might not otherwise be
aware of or able to afford these services. Global trends have revealed that in order to achieve
inclusive development and growth, the expansion of financial services to all sections of society
is of utmost importance. As a whole, financial inclusion in the rural as well as financially
backward pockets of cities is a win-win opportunity for everybody involving – the
banks/NBFC’s intermediaries, and the left-out urban population. Banks will handle core
infrastructure and services while intermediaries known as Business Correspondents (BC’s)
will be the executors and act as the face of these banking & financial institutions in dealing
with end-users. Therefore, it is assumed that financial inclusion can initiate the next
revolution of growth and prosperity. In the 21st century, India has been pulling all the right
levers to advance financial inclusion and economic citizenship by channelling its own
transactions to lubricate the system. India’s journey towards economic ascension relies on
how the 65% unbanked population of India (conservative 2012 estimate by World Bank) is
enabled with financial infrastructure.
“Financial Inclusion in SHG-bank Linkage Model under SGSY with special refere...iosrjce
Financial Inclusion is a very big challenge to banking sector. Till now most of the banking facilities
are not reaching to deprive. Micro financing through SHGs is a vital weapon for poverty eradication. But due to
lack of uniformity it is not complete its target efficiently. In this paper try to focus on the financial inclusion in
SHGs-Bank Linkage Programme under SGSY scheme in Jhansi district. SBLP is the banking link with poors to
uplift their socio-economoc, health, nutrition, insurance, saving, education aspects. It is an attempt to clarify
how much this programme reach to beneficiaries of SHGs.
The present study differs from previous studies as it is focused its basic cause for reduction in quality numbers
of SHGs come out after complete all stages. Further, this paper tries to access the grass root issues relating to
SHGs and the normal course in decrease the number of SHGs at last stage in the study area. The study is
undertaken in four development blocks of jhansi Districts of Uttar Pradesh during 2009-13. It is observed that
due to fast growing of the SHG-bank linkage programme, quality credit linked SHG has not cover all stages of
the programme.. Some of the factors affecting the decline of SHGs are the target oriented approach of the
government in preparing group, inadequate incentive to NGO’s for nurturing their groups etc.
This is a joint report focussing the impact of microfinance among the clients before and after the Andhra Pradesh crisis arising from the Andhra Pradesh Microfinance Institutions (Regulation of Money lending) Act, 2010. The report highlights the similar findings from quantitative study conducted by the Centre for Microfinance (CMF) at IFMR Research and qualitative study conducted by MicroSave. This paper features findings related to multiple borrowing, household indebtedness, loan purpose and client perspectives on availability of financing. Both studies validate the fact that the members of the community face issues raising credit in the absence of MFIs. Members of the community have reduced their spending on important aspects such as health, education and business because of non availability of adequate credit from alternative sources. Moneylenders are having a field day with the absence of MFIs. Members of the community are falling back to moneylenders who charge usurious rates of interest to meet their credit needs. The study also highlights the failure of MFIs when designing market led products and processes. MFIs, in the process of rapid scale up and single minded pursuit of exponential growth targets, ignored the needs of the clients. The study clearly shows the discomfort of the clients with inflexible repayments, interest rates and behaviour of the staff especially when it comes to repayment.
Role of Technology in driving Financial Inclusion 2016 - Part - 5Resurgent India
The banking sector has made rapid strides largely because of the rapid advancement of technology. Automated teller machines, internet and mobile banking, payment wallets, and other advancements have made significant improvements to consumer experience and have also helped banks widen their reach.
The presentation describes the impact of Maker ecosystem on the IoT ecosystem . A true multidisciplinary approach of makers is responsible for the boom.
Talk delivered at IEEE IoT Usecases workshop (4-5 Dec 2015 | Hotel Lalit Ashok).
Analysis of the Level of Financial Literacy and Financial Inclusion among Rur...iosrjce
Financial Literacy is the base and primary step for financial inclusion. It provides knowledge on
merits and demerits of financial products and services, based on that an individual can select the right product
which suits his/her needs. In the words of Shri Pranab Mukherjee, (2013) financial literacy refers “Financial
literacy and education plays a vital role in financial inclusion, inclusive growth and sustainable prosperity”. It
ensures that financial services are to be reached to weaker sections or unreached sections of the society. All the
initiatives should aim at achieving financial inclusion through financial literacy.
For improving awareness of financial literacy, several schemes were implemented by the Reserve Banking
of India, the Security and Exchange Board of India, Insurance Regulatory Development Authority, Pension
Fund Regulatory and Development Authority (PFRADA). These bodies are engaged in various financial
education programs in improving financial literacy thereby achieving financial inclusion. Various strategies
are also being implemented for the improvement of financial literacy in India. These include introducing
financial education in school curriculums especially government schools in rural areas, and financial-literacy
training programs set up by commercial banks in urban and semi-urban areas. Village adoption programs were
also established by educational institutions in rural areas. There is a strong concern for banks to arrange
regular campaign through media and road shows to spread awareness about financial inclusion and financial
literacy. The main objective of this study is to know the level of financial literacyamong rural households in
Krishna District, Andhra Pradesh and banking penetration in selected mandals.
Financial inclusions a pavement towards the future growthTapasya123
India’s economic growth rates higher than most developed countries in recent years, a
majority of the country’s population still residue unbanked. Financial Inclusion is a relatively
new socio-economic concept in India that aspire to change this dynamic by providing
financial services at affordable costs to the underprivileged, who might not otherwise be
aware of or able to afford these services. Global trends have revealed that in order to achieve
inclusive development and growth, the expansion of financial services to all sections of society
is of utmost importance. As a whole, financial inclusion in the rural as well as financially
backward pockets of cities is a win-win opportunity for everybody involving – the
banks/NBFC’s intermediaries, and the left-out urban population. Banks will handle core
infrastructure and services while intermediaries known as Business Correspondents (BC’s)
will be the executors and act as the face of these banking & financial institutions in dealing
with end-users. Therefore, it is assumed that financial inclusion can initiate the next
revolution of growth and prosperity. In the 21st century, India has been pulling all the right
levers to advance financial inclusion and economic citizenship by channelling its own
transactions to lubricate the system. India’s journey towards economic ascension relies on
how the 65% unbanked population of India (conservative 2012 estimate by World Bank) is
enabled with financial infrastructure.
Indian agriculture sector experiences vicious circle of poverty which decelerate economic growth. Financial exclusion is one of the main reason of it. In India marginals and weaker sections are excluded from main stream of the economy. To achieve sustainable development, all sections of the people need to be come into main stream. This study is an attempt to understand the concept of financial inclusion, financial inclusion in India and micro finance. RBI defines “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”. The present study also tries to understand how micro finance lending facilitates the acceleration of financial inclusion. Micro finance lending is a strong weapon of financial inclusion. Micro credit provided by banks emerged as a major policy tool of financial assistance in the rural credit, particularly to the poor sections of the society. Micro finance by providing small loans and savings facilities to those who have been excluded from other formal services, acting as a key strategy for reducing poverty and discrimination.
Inclusive development means empowerment of weaker sections, SC/STs and women. In this context “financial inclusion “ owns its significance.
This presentation discusses the causes of Andhra Pradesh crisis, how it all started and the possible after-effects. It also examines how the Indian MFIs and the government should respond post this crisis. The presentation concludes with reactions from the clients.
A Little World: Facilitating Safe and Efficient M-Banking in Rural IndiaAshley Metz
The initiative is led by a private sector organization, A Little World (ALW) and its sister entity, a non-profit organization, ZERO Microfinance and Savings Support Foundation (ZMF). ALW and ZMF act as intermediaries between rural communities at one end, and mainstream financial institutions and the government at the other end. ALW offers a secure, low‐cost technology driven delivery platform for financial services through special mobile phones that store and help manage a vast amount of customer bank account data, authenticates account holders through photo and biometric identification and allows access to the bank accounts as Point of Service terminals. Since its pilot project in 2006, ALW and ZMF have rapidly grown and are now present in 22 states, with over four million rural customers, 8,314 points of presence and an average of 25,000 new account openings every day.
After the nationalization of banks, the financial sector has become an important factor in reducing poverty, increasing employment and increasing economic growth of the country. But this sector has not been able to contribute to its utmost because of its unawareness about formal financial institutions among certain sectors of society. Those sectors are mainly the rural population of the country who are illiterate and who are unaware of the facilities provided by the Government of India in the field of finance which can help them maintain their income in an efficient way and introduce them to the investment schemes that are coming up to manage their income properly. Financially excluded people mostly include rural poor, low-income underprivileged people. Some of the authors carried out a survey in few states of India because these states have well-developed financial facilities available, but still there is a need for financial inclusion services in some areas because the available services are not utilized by the general public. For this reason, they went on and asked relevant questions about why the people are not interested in approaching formal financial institution and whether they are aware of these services and facilities or not. The data were collected and reported in a systematic manner. This author focused on whether the financial inclusion has really been implemented in the regions which the banks claimed to be completely financially inclusive. Survey of researchers concluded that more than half of the population from rural India are unaware of the financial facilities and services provided by formal institutions. Our empirical focus is on financial literacy that is needed to increase financial inclusion in rural sectors of India. The literature review done talks about the studies done by various researchers in this field and the strategies and approaches adopted by the government, RBI and NGOs to spread the awareness in order to involve them in contributing their part to the economic growth of the country. A detailed study is done by means survey by the help of a questionnaire and the data collected are worked on with the help of statistical tools which ultimately gave us the relation between various parameters considered for financial inclusion. This analysis and interpretation gave us the relation between financial literacy and financial inclusion and we were able to conclude that financial literacy has a role to play in the process of financial inclusion.
India’s economic growth rates higher than most developed countries in recent years, a
majority of the country’s population still residue unbanked. Financial Inclusion is a relatively
new socio-economic concept in India that aspire to change this dynamic by providing
financial services at affordable costs to the underprivileged, who might not otherwise be
aware of or able to afford these services. Global trends have revealed that in order to achieve
inclusive development and growth, the expansion of financial services to all sections of society
is of utmost importance. As a whole, financial inclusion in the rural as well as financially
backward pockets of cities is a win-win opportunity for everybody involving – the
banks/NBFC’s intermediaries, and the left-out urban population. Banks will handle core
infrastructure and services while intermediaries known as Business Correspondents (BC’s)
will be the executors and act as the face of these banking & financial institutions in dealing
with end-users. Therefore, it is assumed that financial inclusion can initiate the next
revolution of growth and prosperity. In the 21st century, India has been pulling all the right
levers to advance financial inclusion and economic citizenship by channelling its own
transactions to lubricate the system. India’s journey towards economic ascension relies on
how the 65% unbanked population of India (conservative 2012 estimate by World Bank) is
enabled with financial infrastructure.
“Financial Inclusion in SHG-bank Linkage Model under SGSY with special refere...iosrjce
Financial Inclusion is a very big challenge to banking sector. Till now most of the banking facilities
are not reaching to deprive. Micro financing through SHGs is a vital weapon for poverty eradication. But due to
lack of uniformity it is not complete its target efficiently. In this paper try to focus on the financial inclusion in
SHGs-Bank Linkage Programme under SGSY scheme in Jhansi district. SBLP is the banking link with poors to
uplift their socio-economoc, health, nutrition, insurance, saving, education aspects. It is an attempt to clarify
how much this programme reach to beneficiaries of SHGs.
The present study differs from previous studies as it is focused its basic cause for reduction in quality numbers
of SHGs come out after complete all stages. Further, this paper tries to access the grass root issues relating to
SHGs and the normal course in decrease the number of SHGs at last stage in the study area. The study is
undertaken in four development blocks of jhansi Districts of Uttar Pradesh during 2009-13. It is observed that
due to fast growing of the SHG-bank linkage programme, quality credit linked SHG has not cover all stages of
the programme.. Some of the factors affecting the decline of SHGs are the target oriented approach of the
government in preparing group, inadequate incentive to NGO’s for nurturing their groups etc.
This is a joint report focussing the impact of microfinance among the clients before and after the Andhra Pradesh crisis arising from the Andhra Pradesh Microfinance Institutions (Regulation of Money lending) Act, 2010. The report highlights the similar findings from quantitative study conducted by the Centre for Microfinance (CMF) at IFMR Research and qualitative study conducted by MicroSave. This paper features findings related to multiple borrowing, household indebtedness, loan purpose and client perspectives on availability of financing. Both studies validate the fact that the members of the community face issues raising credit in the absence of MFIs. Members of the community have reduced their spending on important aspects such as health, education and business because of non availability of adequate credit from alternative sources. Moneylenders are having a field day with the absence of MFIs. Members of the community are falling back to moneylenders who charge usurious rates of interest to meet their credit needs. The study also highlights the failure of MFIs when designing market led products and processes. MFIs, in the process of rapid scale up and single minded pursuit of exponential growth targets, ignored the needs of the clients. The study clearly shows the discomfort of the clients with inflexible repayments, interest rates and behaviour of the staff especially when it comes to repayment.
Role of Technology in driving Financial Inclusion 2016 - Part - 5Resurgent India
The banking sector has made rapid strides largely because of the rapid advancement of technology. Automated teller machines, internet and mobile banking, payment wallets, and other advancements have made significant improvements to consumer experience and have also helped banks widen their reach.
The presentation describes the impact of Maker ecosystem on the IoT ecosystem . A true multidisciplinary approach of makers is responsible for the boom.
Talk delivered at IEEE IoT Usecases workshop (4-5 Dec 2015 | Hotel Lalit Ashok).
tomorrow is already here // si 93% des marques venaient à disparaitre, personne ne s'en soucierait... Dans une société où l’attachement à la marque est en pleine perte de vitesse, quels sont les leviers pour faire qu'une marque compte ?
Nouvelle étude de l'équipe 'Stratégie & Développement' de l'agence Dagobert autour des marques qui comptent
Research Inventy : International Journal of Engineering and Scienceresearchinventy
Research Inventy : International Journal of Engineering and Science is published by the group of young academic and industrial researchers with 12 Issues per year. It is an online as well as print version open access journal that provides rapid publication (monthly) of articles in all areas of the subject such as: civil, mechanical, chemical, electronic and computer engineering as well as production and information technology. The Journal welcomes the submission of manuscripts that meet the general criteria of significance and scientific excellence. Papers will be published by rapid process within 20 days after acceptance and peer review process takes only 7 days. All articles published in Research Inventy will be peer-reviewed.
The State of Financial Inclusion – An Overview and AdvancementIJLT EMAS
Financial Inclusion is delivery of banking services at an affordable cost to the vast sections of disadvantaged and low income groups. The main focus of financial inclusion in India is to promote sustainable development and generating employment in rural areas for the rural population. In India, few households have access to banking services. There are many factors affecting access to financial services by weaker section of society in India. Several steps have been taken by the Reserve Bank of India and the Government to bring the financially excluded people to the fold of the formal banking services. Financial Access Survey for 2016 released by International Monetary Fund (IMF) shows that in India there only 13 commercial bank branches per 1,00,000 individuals. PM Jan Dhan Yojna (PMJDY) was highly successful in opening bank accounts in which more than 97% of the accounts were opened with the public banks, but around 72% of these accounts show 'zero balances'. More than 1 crore bank accounts have been opened under PMJDY. However, despite the opening of such accounts, access has been lower. Access to banking is an important indicator of the level of financial inclusion in the country. India's urban and semi-urban region performs fairly well, however rural region is still underdeveloped in banking. Digital India campaign recently launched schemes like MUDRA, startup India, PMJDY, initiation of new banks like payment banks, PSL certificates trading etc. are in the right direction. With government moving towards DBT for subsidies financial inclusion becomes very critical. Focus should shift to increase coverage, reach of services and ease of availing credit.
EMERGING TRENDS IN BANKING SECTOR – A COMPARATIVE STUDY FROM FINANCIAL INCLUS...IAEME Publication
Financial inclusion of the entire population is an important vehicle for development in a country The number of financially excluded people in a developing country like India is much higher than many developed countries in spite of the several initiatives taken by the Government of India for the rising middle class in the towns and villages investment in banking products is not a default choice. A preliminary investigation has been carried outin one such district in India pertaining to the banking products. The study is exploratory and analytical in nature. The main objective is to study the present scenario in banking.
Inclusive growth is possible only through proper mechanism which channelizes all the resources from top to bottom. Financial inclusion is an innovative concept which makes alternative techniques to promote the banking habits of the rural people because, India is considered as largest rural people consist in the world. Financial inclusion is aimed at providing banking and financial services to all people in a fair, transparent and equitable manner at affordable cost. Households with low income often lack access to bank account and have to spend time and money for multiple visits to avail the banking services, be it opening a savings bank account or availing a loan, these families find it more difficult to save and to plan financially for the future. This paper is an attempt to discuss the overview of financial inclusion in India.
Research Inventy : International Journal of Engineering and Science
1. Research Inventy: International Journal Of Engineering And Science
Issn: 2278-4721, Vol.2, Issue 6 (March 2013), Pp 15-20
Www.Researchinventy.Com
An Analytical Study:Relevance of Financial Inclusion For
Developing Nations
1,
Dr. Anupama Sharma, 2, Ms. Sumita Kukreja
1,2,
Asst. Professor Department of Business Administration Maharaja Surajmal Institute
Abstract : For developing nations the era is of inclusive growth and the key for inclusive growth is financial
inclusion. Financial inclusion or inclusive financing is the delivery of financial services, at affordable costs, to
sections of disadvantaged and low income segments of society. There have been many formidable challenges in
financial inclusion area such as bringing the gap between the sections of society that are financially excluded
within the ambit of the formal financial system, providing financial literacy and strengthening credit delivery
mechanisms so as to improvised the financial economic growth.A nation can grow economically and socially if
it’s weaker section can turn out to be financial independent. The paper highlights the basic features of financial
inclusion, and its need for social and economic development of the society. The study focuses on the role of
financial inclusion, in strengthening the India’s position in relation to other countries economy. For analysing
such facts data for the study has been gathered through secondary sources including report of RBI, NABARD,
books on financial inclusion and other articles written by eminent authors. After analysing the facts and figures
it can be concluded that undoubtedly financial inclusion is playing a catalytic role for the economic and social
development of society but still there is a long road ahead to achieve the desired outcomes.
Key Words:-Financial inclusion, Business correspondents, Financial stability, no frill accounts, KCC
I. Introduction
1.1Financial Inclusion
Financial Inclusion is considered to be the core objective of many developing nations since from last
decade as many research findings correlate the direct link between the financial exclusion and the poverty
prevailing in developing nations. According to World Bank report “Financial inclusion, or broad access to
financial services, is defined as an absence of price or non price barriers in the use of financial services.” The
term Financial Inclusion needs to be interpreted in a relative dimension. Depending on the stage of
development, the degree of Financial Inclusion differs among countries. It‟s been surprising fact that India ranks
second in the world in terms of financially excluded households after china .For the inclusive growth process of
economy the central bank has also provided high importance to the financial inclusion.
Normally the weaker sections of the society are completely ignored by the formal financial institutions
in the race of making chunks of profits or the complexities involved in providing finance to the weaker section.
Financial inclusion or inclusive financing is the delivery of financial services, at affordable costs, to sections of
disadvantaged and low income segments of society. There have been many formidable challenges in financial
inclusion area such as bringing the gap between the sections of society that are financially excluded within the
ambit of the formal financial system, providing financial literacy and strengthening credit delivery mechanisms
so as to improvised the financial economic growth. Unrestrained access to public goods and services is the sine
qua non of an open and efficient society. It is argued that as banking services are in the nature of public good;
the availability of banking and payment services to the entire population without discrimination is the prime
objective of this public policy. Thus the term Financial Inclusion can 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 an affordable cost.
1.2 Objective of Study
1. To explore the need and significance of financial inclusion for economic and social development of society.
2. To analyse the current status of financial inclusion in Indian economy.
3. To study the access of rural people to bank branches and the number of ATM opened in those areas.
4. To study the progress of State Cooperative Banks in financial inclusion plan.
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2. An Analytical Study:Relevance Of Financial Inclusion...
1.3 Research Methodology
Research methodology is partly descriptive, partly exploratory and partly casual .For this study data
and information has been collected with the help of Books, Magazines, Newspapers, Research Articles,
Research Journals, E-Journals, RBI Report, Report of NABARD etc.
II. Need Of Financial Inclusion
According to the United Nations the main goals of inclusive finance are as follows:
1. Access at a reasonable cost of all households and enterprises to the range of financial services for which
they are “bankable,” including savings, short and long-term credit, leasing and factoring, mortgages,
insurance, pensions, payments, local money transfers and international remittances.
2. Sound institutions, guided by appropriate internal management systems, industry performance standards,
and performance monitoring by the market, as well as by sound prudential regulation where required
3. Financial and institutional sustainability as a means of providing access to financial services over time
4. Multiple providers of financial services, wherever feasible, so as to bring cost-effective and a wide variety
of alternatives to customers (which could include any number of combinations of sound private, non-profit
and public providers).
There has been a many objectives related to the need for financial Inclusion such as
Economic Objectives:
For the equitable growth in all the sections of the society leading to a reduction of disparities in terms of
income and savings the financial inclusion can serve as a boom for the underdeveloped and developing
nations.
Mobilisation of Savings
If the weaker sections are provided with the facility of banking services the savings can be mobilised
which is normally piled up at their households can be effectively utilised for the capital formation and
growth of the economy.
Larger Market for the financial system
To serve the requirements and need of the large section of society there is a surgent need for the larger
market for the financial system which opens up the avenue for the new players in the financial sectpr and
can lead to growth of banking sector also.
Social Objectives
Poverty Eradication is considered to be the main sole objective of the financial inclusion scheme since
they bridge up the gap between the weaker section of society and the sources of livelihood and the means
of income which can be generated for them if they get loans and advances.
Sustainable Livelihood
Once the weaker section of society got some money in loan form they can start up their own business or
they can support their education through which they can sustain their livelihood. Thus financial inclusion
is turn out to be boom for the low income households.
Political Objectives
There are certain other political objectives which can be achieved with the wider inclusion of lower strata
in the society and an effective direction can be given to the government programmes.
III. Initiation Of Financial Inclusion Concept In India
In India, financial inclusion first featured in 2005, when it was introduced by K C Chakraborthy, the
chairman of Indian Bank. Mangalam Village became the first village in India where all households were
provided banking facilities. Norms were relaxed for people intending to open accounts with annual deposits of
less than Rs. 50,000. General credit cards (GCCs) were issued to the poor and the disadvantaged with a view to
help them access easy credit. In January 2006, the Reserve Bank permitted commercial banks to make use of the
services of non-governmental organizations (NGOs/SHGs), micro-finance institutions, and other civil society
organizations as intermediaries for providing financial and banking services. These intermediaries could be used
as business facilitators or business correspondents by commercial banks. The bank asked the commercial banks
in different regions to start a 100% financial inclusion campaign on a pilot basis. As a result of the campaign
states or U.T.s like Pondicherry, Himachal Pradesh and Kerala announced 100% financial inclusion in all their
districts. Reserve Bank of India‟s vision for 2020 is to open nearly 600 million new customers' accounts and
service them through a variety of channels by leveraging on IT. However, illiteracy and the low income savings
and lack of bank branches in rural areas continue to be a roadblock to financial inclusion in many states and
there is inadequate legal and financial structure.
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3. An Analytical Study:Relevance Of Financial Inclusion...
IV. Survey Reports On Financial Inclusion
A financial inclusion survey was conducted by World Bank team in India between April-June, 2011,
which included face to face interviews of 3,518 respondents. The sample excluded the north eastern states and
remote islands representing approximately 10 per cent of the total adult population. The survey suggest in
developing countries India lags behind in opening bank accounts, but is much closer to the global average when
it comes to borrowing from formal institutions. In India, 35 per cent of people had formal accounts versus the
global average of 50 per cent and the average of 41 per cent in developing economies as can be seen from the
table 1. The survey also points to the slow growth of mobile money in India, where only 4 per cent of adults in
the Global Findex sample report having used a mobile phone in the past 12 months to pay bills or sends or
receive money. Keeping in view the goal of bringing banking services to identified 74,414 villages with
population above 2,000 by March 2012, and thereafter progressively to all villages over a period of time, the
Reserve Bank advised commercial banks that while preparing their Annual Branch Expansion Plan (ABEP),
they should allocate at least 25 per cent of the total number of branches proposed to be opened during the year in
unbanked rural centres.
Table - 1: Key Statistics on Financial Inclusion in India: A Survey
Source: Asli Demirguc - Kunt and Klapper, L. (2012): „Measuring Financial Inclusion‟, Policy Research
Working Paper, 6025, World Bank,April
Thus a lot has to be done at to done to bridge the gap between the formal financial institutions and the
rural people needs.To make them aware of the fact about the facilities available for their benefit and which can
help India to turn out to a developed nation from a developing nation. As can be seen from the below table-2
that the financial inclusion plan has shown a tremendous growth in the past two years. Banks are gaining
momentum in areas like opening up of new banking outlets in rural areas, deploying new business
correspondents (BC‟s),opening of new frills accounts, granting more credit through KCC(Kisan Credit Card)
AND GCC‟s(General Purpose Credit Card).
Table-2 : Progress of SCBs in Financial Inclusion Plan (excluding RRBs)
Particulars March March March Variation
2010 2011 2012 March
2012 over
March
2010
1 2 3 4 5
No. of BCs/BC 33,042 57,329 95,767 62,725
Agents
Deployed
Number of banking 27,353 54,246 82,300 54,947
outlets in villages
with population
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4. An Analytical Study:Relevance Of Financial Inclusion...
above 2,000
Number of banking 26,905 45,937 65,234 38,329
outlets in villages
with population
less than 2,000
Total number of 54,258 1,00,183 1,47,534 93,276
banking outlets in
villages Of which
a) Through 21,475 22,662 24,701 3,226
branches
b) Through BCs 32,684 77,138 1,20,355 87,671
c) Through Other 99 383 2,478 2,379
Modes
Urban Locations 433 3,757 5,875 5,442
covered
through BCs
No-Frill accounts
Number (millions) 50.3 75.4 105.5 55.2
Amount (` billions) 42.6 57.0 93.3 50.7
Overdraft availed
in No -Frill
Accounts
Number (millions) 0.1 0.5 1.5 1.4
Amount (` billions) 0.1 0.2 0.6 0.5
KisanCreditCard
KCC
Number of 15.9 18.2 20.3 4.4
Accounts
( millions)
Outstanding 940.1 1237.4 1651.5 711.4
amount
(` billions)
General Purpose
Credit
Card (GCC)
Number of 0.9 1.0 1.3 0.4
Accounts
(millions)
Outstanding 25.8 21.9 27.3 1.6
amount
(` billions)
ICT Based
Accounts through
BCs
Number of 12.6 29.6 52.1 39.5
Accounts
( millions)
Number of 18.7 64.6 119.3 183.9
transactions
during the year
(millions)
Source: Asli Demirguc - Kunt and Klapper, L. (2012): „Measuring Financial Inclusion‟, Policy Research
Working Paper, 6025, World Bank,April
As can be seen from the above statistics the number of Business Correspondents have increased and the number
of rural banking branches have increased from 27,353 in 2010 to 82,300 in 2012.The primary mode which has
gained momentum for opening new saving account in rural banks is through Business Correspondent (BC‟s).We
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5. An Analytical Study:Relevance Of Financial Inclusion...
can see the account opened by business correspondents in 2010 is 32,684 which has increased to 1,20,355 in
2012.Also the opening of new no-frill account is on the higher side i.e from 50.3 million account to 105.5
million account.The distribution of KCC (Kisan credit cards) and GCC (General purpose credit card) has also
been on increasing side but still there is major scope for reaping its benefits.Hence the survey states that though
the govt has initiated many steps and the steps are also moving in positive direction and the financial inclusion
has shown an immense growth which if channelize in proper manner can make the life of many rural villagers
easy and steady.
Table 3: Outreach of Banking Sector Country wise position – India vis-à-vis the World
Geographic and demographic penetration indicates the outreach of banking sector. Geographic penetration can
be measured in terms of number of bank branches per 1000 sq km and number of ATMs per 1000 sq km. larger
number of branches and ATMs per Sq. kms.The following table represent the comparison of Geographic and
Demographic penetration of Banking Services of various countries.
Country Geographic Penetration Demographic Penetration
No of bank No of ATMs per No of branches No of ATMs
branches per 1000 sq km per 100,000 per 100,000
1000 sq km people people
Korea 65.02 436.88 13.40 40.03
U.K 45.16 104.46 18.35 42.45
India 22.57 - 6.30 -
Indonesia 10.00 5.73 8.44 4.84
USA 9.81 38.43 30.86 120.94
Mexico 4.09 8.91 7.63 16.63
Brazil 3.05 3.72 14.59 17.82
China 1.83 5.25 1.33 3.80
Russia 0.19 0.53 2.24 6.28
Source: Reaching Out: Access to and use of banking services across countries, Thorsten Beck, Asli Demirguc-
Kunt and Maria Soledad Martinez Peria, World Bank Policy Research, WPS 3754, World Bank, 2005 # - As per
Trends and Progress of Banking in India, RBI, 2006-07 (Appendix Table III.35) , end March 2007 there were
27,088 ATMs of Scheduled Commercial Banks in India.
As can be seen from the above table India being the developing nation and having a large number of rural sector
still it lags behind in providing the basic facility of opening of number of bank branches in the rural areas.
V. Forthcoming Plan Of Banks For Financial Inclusion
The Reserve Bank had advised all public and private sector banks to prepare and submit their board
approved financial inclusion plans (FIPs) to be rolled out in 3 years from April 2010 to March 2013. These FIPs
contained self-set targets in respect of opening of rural brick and mortar branches, deployment of business
correspondents (BCs), coverage of unbanked villages through various modes, opening of no-frills accounts,
Kisan Credit Cards (KCCs) and General Credit Cards (GCCs) to be issued etc.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. Some of these steps are:
1. Opening of no-frills accounts: Basic banking no-frills account is with nil or very low minimum balance as
well as charges that make such accounts accessible to vast sections of the population. Banks have been
advised to provide small overdrafts in such accounts.
2. Relaxation on know-your-customer (KYC) norms:KYC requirements for opening bank accounts were
relaxed for small accounts in August 2005, thereby simplifying procedures by stipulating that introduction
by an account holder who has been subjected to the full KYC drill would suffice for opening such
accounts.The banks were also permitted to take any evidence as to the identity and address of the customer
to their satisfaction. It has now been further relaxed to include the letters issued by the Unique Identification
Authority of India containing details of name, address and Aadhaar number.
3. Use of technology:Recognizing that technology has the potential to address the issues of outreach and
credit delivery in rural and remote areas in a viable manner,banks have been advised to make effective use
of information and communications technology (ICT), to provide doorstep banking services through the BC
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6. An Analytical Study:Relevance Of Financial Inclusion...
model where the accounts can be operated by even illiterate customers by using biometrics, thus ensuring
the security of transactions and enhancing confidence in the banking system.
4. Adoption of EBT: Banks have been advised to implement EBT by leveraging ICT-based banking through
BCs to transfer social benefits electronically to the bank account of the beneficiary and deliver government
benefits to the doorstep of the beneficiary, thus reducing dependence on cash and lowering transaction
costs.
5. GCC:With a view to helping the poor and the disadvantaged with access to easy credit, banks have been
asked to consider introduction of a general purpose credit card facility up to `25,000 at their rural and semi-
urban branches. The objective of the scheme is to provide hassle-free credit to banks‟ customers based on
the assessment of cash flow without insistence on security, purpose or end use of the credit. This is in the
nature of revolving credit entitling the holder to withdraw up to the limit sanctioned.
6. Simplified branch authorization:To address the issue of uneven spread of bank branches, in December
2009, domestic scheduled commercial banks were permitted to freely open branches in tier III to tier VI
centres with a population of less than 50,000 under general permission, subject to reporting. In the north-
eastern states and Sikkim, domestic scheduled commercial banks can now open branches in rural,semi-
urban and urban centres without the need to take permission from RBI in each case, subject to reporting.
7. Opening of branches in unbanked rural centres: To further step up the opening of branches in rural areas
so as to improve banking penetration and financial inclusion rapidly, the need for the opening of more
bricks and mortar branches, besides the use of BCs, was felt. Accordingly, banks have been mandated in the
April monetary policy statement to allocate at least 25% of the total number of branches to be opened
during a year to unbanked rural centres.
8. Engaging business correspondents (BCs):In January 2006, RBI permitted banks to engage business
facilitators (BFs) and BCs as intermediaries for providing financial and banking services. The BC model
allows banks to provide doorstep delivery of services, especially cash in-cash out transactions, thus
addressing the last-mile problem. The list of eligible individuals and entities that can be engaged as BCs is
being widened from time to time. With effect from September 2010, for-profit companies have also been
allowed to be engaged as BCs.
VI. Conclusion
For standing out on a global platform India has to look upon the inclusive growth and financial
inclusion is the key for inclusive growth .There is a long way to go for the financial inclusion to reach to the
core poor according to K.C.Chakrabarty RBI Deputy Governor “Even today the fact remains that nearly half of
the Indian population doesn‟t have access to formal financial services and are largely dependent on money
lenders”. Mere opening of no-frill bank accounts is not the purpose or the end of financial inclusion while
formal financial institutions must gain the trust and goodwill of the poor through developing strong linkages
with community-based financial ventures and cooperative. Financial Inclusion has not yielded the desired
results and there is long road ahead but no doubt it is playing a significant role and is working on the positive
side .
References:
[1] Dr Chakrabarty KC, DG, RBI. Keynote address on “Furthering Financial Inclusion through Financial Literacy and Credit
Counselling”.
[2] Asli Demirguc - Kunt and Klapper, L. (2012): „Measuring Financial Inclusion‟, Policy Research Working Paper, 6025, World
Bank,April
[3] Reserve Bank of India (2006a), “Financial Inclusion and Millennium Development Goals”, Address by Usha Thorat, Deputy Governor
of the Reserve Bank of India, January 16, available at http://www.rbi.org.in.
[4] Reserve Bank of India (2006b), “Economic Growth, Financial Deepening and Financial Inclusion”, Speech by Rakesh Mohan, Deputy
Governor of the Reserve Bank of India, November 20, available at ttp://www.rbi.org.in.
[5] Reaching Out: Access to and use of banking services across countries, Thorsten Beck, Asli Demirguc-Kunt and Maria Soledad
Martinez Peria, World Bank Policy Research, WPS 3754, World Bank, 2005 # - As per Trends and Progress of Banking in India, RBI,
2006-07 (Appendix Table III.35) , end March 2007 there were 27,088 ATMs of Scheduled Commercial Banks in India.
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