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India has witnessed unprecedented growth in mobilization of deposits, extension of credit, usage of innovative financial services etc. However, access to finances and its services are very limited and many a times not available to poor and vulnerable groups where majority of the Indian population live. There is an uneven spread of financial services creating rural-urban divide.
Financial inclusion is delivery of financial services at an affordable cost to the vast sections of the disadvantaged and low-income groups, providing them with timely and adequate access to the financial products, services like Bank Accounts, Savings Products, Remittances & Payment services, Insurance, advisory services, Entrepreneurial and Micro credit, Micro finance. An initial effort has been made for the widespread network of banking system through the establishment of Regional Rural Banks, Microfinance Institutions, Self Help Groups etc with the objective of providing easy and timely finance. Despite of various initiatives undertaken, there are still many obstacles cropping up in attaining Financial Inclusion. Hence, both public and private sector institutions should work together to overcome these challenges and contribute towards Inclusive Growth.
This paper is directed towards understanding the importance of Financial Inclusion for Inclusive Growth; it also aims at analyzing the role of various institutions like MFIs, SHGs, RRBs in achieving Financial Inclusion.
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