The Rangarajan Committee
defines the term Financial
Inclusion (FI) as "the process of ensuring access to
financial services and timely and adequate credit to the
vulnerable groups such as weaker sections and low income groups, at an
affordable cost."
FI is today the buzzword of any academic research,
public policy-making and seminars. Financial services includes
savings, loans, insurance, credit, payments, etc. In order to
eradicate poverty and for an overall development of the economy, FI is
imperative.
The Indian economy has witnessed a growth rate of 8.5 to 9%
over the last five years. However, the current year's growth has been
affected by global economic slowdownto a great extent . For
a vast majority of India's population, agriculture is the
primary source of livelihood. But if we look at the growth of agriculture, it
is just little over 2%. There is enormous potential in the primary
and small and medium enterprises, but a major constraint faced by
this sector is the financial exclusion. Figures 1 and 2 and Table 1
reveal the strategic data regarding FI in India. |
