financial inclusion project, Study notes of Finance

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FINANCIAL

INCLUSION

What it is and How it helps economy DHEERAJ

SHARMA

18MBA

SOME FACTS

• Around 15-20% people does not have bank accounts earlier it was 65% before jan dhan yojana.
• (^) 30-40% India's poor depend on local money lenders on unreasonable rates like lagaan system during British period
• People taking insurance is very low in number
• (^) Only cash transactions in rural areas

FINANCIAL INCLUSION FOUR (PILLARS)

• (^) 1. BANKING - Savings deposit, online payment, online transfer, ATM, debit card, credit card, cheque
• (^) 2. LOAN - Availability of loans on reasonable and affordable interest rates
• (^) 3. INVESTMENT - Equity investment, mutual fund, government securities, investment in other schemes
• (^) 4. INSURANCE - Life insurance , General and non-life insurance

FINANCIAL INCLUSION BENEFITS

. The general public deposits their savings in banks - increase in bank

deposits - more money or capital than before the banks - the bank

will now provide more loans in different sectors - Economic

Development Program - Increase in Employment

. Poor people will not have to go to the moneylenders after getting

cheap loans, exploitation will decrease

. Due to getting good investment opportunities - the general public will

be encouraged to invest in different financial products.

. The gap between poverty and Affluence will decrease . Many Subsidy and Public Welfare Schemes - Real Benefit Transfer - Money Reduction in Favored Account . Insurance in case of accidental accident or death of family head . It will be easy to implement different social schemes run by the government. . The economic and social life of the weaker sections will improve in the living

FINANCIAL INCLUSION-CHALLENGES IN APPLYING

• (^) Illiteracy A large part of the population is illiterate - lack of awareness difficulty reaching information of financial services
• (^) Nearly one-third of the poverty in the country is below the poverty line, economically weaker - not saving
• (^) Most commercial banks in urban areas - access to rural population banks - Difficulty obtaining financial services
• (^) Many types of bank fees to be collected by banks - due to which poor people are reluctant to take financial services
• (^) The man among the moneylenders - so much easier to reach the general public's moneylenders than the banks - dependence on moneylenders even today

IMPORTANT GOVERNMENT SCHEMES AFFILIATED WITH F I

• Pradhan Mantri Jan Dhan Yojana (PMJDY)
• (^) Atal Pension Yojana (APY)
• (^) Pradhan Mantri Vaya Vandana Yojana
• (^) Stand Up India Scheme
• Pradhan Mantri Mudra Yojana
• (^) Pradhan Mantri Suraksha Bima Yojana (PMSBY)
• (^) Sukanya Samriddhi Yojana
• (^) Jeevan Suraksha Bandhan Yojana
• (^) Varishtha Pension Bima Yojana (VPBY)
• (^) PRADHAN MANTRI MUDRA YOJANA (PMMY)