What is Financial Inclusion?
Financial Inclusion is the delivery of banking services at an affordable cost to vast sections of disadvantaged and low income groups. The key focus of Financial Inclusion includes four products:
- A pure savings product with inbuilt overdraft facility
- A Recurring Deposit product
- A Remittance product and
- Entrepreneurship credit in the form of Kissan Credit Card (KCC) / General Credit Card( GCC)
Key Objective of Financial Inclusion
- Extending formal banking system among the less privileged in urban & rural India.
- Weaning them away from unorganized money markets and moneylenders.
- Equipping them with the confidence to make informed financial decisions.
Key Industry Initiative towards Financial Inclusion
- Introduction of Basic Saving Bank Deposit Account (BSBDA) and Small accounts
- Introduction of Business Correspondent (BC) Model for service delivery in remote areas
- Adoption of Information & Communication Technology (ICT) based model for enhancing outreach.
- Integration of Electronic Benefit Transfer (EBT) for disbursement of Govt. Grants
- Extending of Direct Benefit Transfers to Aadhar linked savings accounts
KMBL’s initiative towards Financial Inclusion (as on 31st May 2013)
- KMBL has more than 2.79 Lakh BSBDA opened under its Financial Inclusion Initiative.
- The Bank has started its ICT based Financial Inclusion Initiative at Mehsana & Banaskantha District of Gujarat, Silvassa district of Dadra & Nagar Haveli and Balodabazar, Bilaspur, Gariabandh & Mungeli District of Chhattisgarh by offering E-Passbook and Smart Cards along with BSBDA. More than 2.26 Lakh Smart Cards have been issued and 189 Customer Service Points (CSP) are fully operational offering basic banking services under the ICT based Financial Inclusion Initiative.
- Kotak Mahindra Bank has covered 49 villages through its own rural bank branch network and 693 villages by way of engaging Business Correspondents.