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
