Financial inclusion is the delivery of financial services by the financial system at an affordable cost to the disadvantaged and low income groups. Over 12 crore households are not touched by banks. Inclusion, from every aspect, is beneficial to the bank, people and state. The article discusses the international experience and Indian initiatives regarding financial inclusion, outlining the agenda ahead to touch the people at the bottom of the pyramid.

Financial inclusion means the delivery of financial ser vices by the financial system at an affordable cost to various sections of the people, including disadvantaged and low income groups. Financial services means provision of services such as savings, credit, remittance, insurance and other facilities by the financial system (Refer Figure).

Marginalization of individuals/groups is situational, it is related to poverty. Most of the people are excluded from the development process because they are poor. The reasons may be many like due to absolute or relative poverty, or inequality of income, or health-related problems. Exclusion is a process where the market economy excludes the disadvantaged sections of the society; for example, marginal farmers, artisans, those who are economically poor, irrespective of caste and religion, etc.

Financial Inclusion, Financial Services, Microfinance Institutions, MFIs, Joint Liability Groups, JLG, Kissan Credit Card, KCC, Information and communication Technology, ICT, Mahajan V, Capital to Risk-weighted Asset Ratio, CRAR, Nonperforming Asset, NPA.