Dynamics of Financial Inclusion in India
Chinnama Naidu Jammu1, G. Venkata Chalam2
1Chinnama Naidu Jammu, Researsch Scholar, Department of Commerce and Business Administration, Acharya Nagarjuna University, Guntur (Andhra Pradesh), India.
2G. Venkata Chalam, Guest Faculty, Department of Commerce, Paari School of Business, SRM University-A.P., Amaravathi, Neerukonda (V), Mangalagiri (M), Guntur (Andhra Pradesh), India.
Manuscript received on 01 November 2024 | First Revised Manuscript received on 10 November 2024 | Second Revised Manuscript received on 22 January 2025 | Manuscript Accepted on 15 February 2025 | Manuscript published on 28 February 2025 | PP: 6-14 | Volume-11 Issue-6, February 2025 | Retrieval Number: 100.1/ijmh.D176611041224 | DOI: 10.35940/ijmh.D1766.11060225
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Abstract: “Financial inclusion helps revitalize people out of poverty and can help speed economic development. It can draw more women into the mainstream of economic activity, harnessing their contributions to the society. Indhrawathi Sri Mulyani according to the Indonesian Finance Minister, a former World Bank Group head. The National Bureau of Economic Research claims that “12.4% of those in the top quartile of financial knowledge relied on books and newspapers as their primary source of financial knowledge, compared to only 3.9% for those in the lowest quartile of financial competence”. Growth that is inclusive can only occur via appropriate mechanisms that channel all their sources from top to bottom with innumerable sources from the economy. Given that India has the largest rural population in the world, financial inclusion is a novel idea that uses creative methods to encourage rural residents to open bank accounts. The goal of financial inclusion is to offer banking and financial services to the whole population at a reasonable cost in a fair, transparent, and equitable manner. However, low-income households frequently do not have access to bank accounts and must pay for numerous visits and time to obtain banking services, such as opening a savings account or obtaining a loan. As a result, these families find it more challenging to save money and make long-term financial plans. The concept of financial inclusion, its evolution, IFI, needs, benefits, customer engagement strategies, initiatives, expansion and modes of financial inclusion like ATMs branch openings, loan utilization, mobile transactions, etc. are all insisted upon in this comprehensive study. An attempt is made to address the general topic of financial inclusion in India in this paper.
Keywords: Financial Inclusion, Reserve Bank of India, Inclusive Growth, Financial Services, ATM Cards, Commercial Banks, Mobile Banking, Loans, Bank Accounts, IFI, Sustainable.
Scope of the Article: Business