A Review Study on Financial Inclusion Measures and Financial Literacy in India

Abstract

While pursuing economic growth when focus is on sustainable development, it is mandatory for a nation to emphasis on inclusive economic growth. A robust financial system is a pre-requisite to economic growth. The primary objective of financial inclusion is to bring entire nation at one platform where everyone can access same level of financial services. This study seeks to analyze the present scenario of financial inclusion in India. Through financial literacy, various measures & digitalization usage of banking services has improved but not significantly.
It is observed that, up to 80% of Indians have bank accounts (same proportion have mobile phone) and mobile banking services but only few are using facilities available to them. In brief, irrespective of various initiatives of central bank in collaboration of Government of India and Reserve Bank of India, the outcome is not found to be considerable. Decisively, Supply side and Demand side both are equally responsible for inclusive growth. Low income level, lack of financial literacy, distance from the bank etc. could be considered as the factors responsible for low demand. Whereas, supply side factors included lack of brick and mortar structure of banks, lack of appropriate products to meet needs of poor and rural people, and complex processes, including documentation required while opening or operating bank account.