Volume: 10, Number: 5, Year: 2019
Financially Inclusion in rural India: Issues and initiatives to achieve national objective
Financial inclusion plays an important role in nation building and work as growth engine of the economy.. Government has taken various major steps in the past for financial inclusion in the form of lead Bank, No-frill account, Banking correspondent, simplified branch expansion (Commercial Bank) etc to reach out the objective of financial inclusion.The Prime Minister of India announced national mission for financial inclusion to ensure accessibility to all types of financial services in low cost in the form of PMJDY, PMMY (PradhanMantri Mudra Yojana), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY ) Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Stand up India Scheme are other initiatives from Government.Implementations of such initiatives merely not fulfill its objective. True picture of the project should be evaluated and both achievements and challenges to be figured out.32.68 Crores PMJDY Accounts opened till 12.09.2018 but how many accounts is active and operational need to be search out. Lack of product knowledge or less knowledge about various schemes being launched is a matter to be addressed. (PMJJBYRs330) & (PMSBY Rs 12) are not getting settled on claim. Regulators need to induce trust regarding the policy so that it can be helpful to people specifically from rural India to ease their vulnerability of risk. PMMY (Mudra) Loans are turning NPA which has risen concern recently by ex RBI Governor. Money lenders is an old concept of lending system in India .After starting of PMJDY and PMMY , Whether influence of these people have decreased requires a grass-root level research. Even after running such beautiful ambitious projects by Government we have to accept the mission is still half accomplished. In India one fourth of the population is rural, illiterate and below poverty line. Specifically, it’s a big concern for states like Bihar, Jharkhand and Odisha. However, to bring development in financial inclusion concept Financial Literacy training should be given to Target groups like farmers, small entrepreneurs, schoolchildren, Anganwadi teachers, Asha Workers and Self-help leaders so that they can communicate illiterate people and they will understand the value and importance of education. Increase in use of technology through App base learning increase outreach, scale and depth of banking services at affordable cost. Banking Correspondent (BC) plays major role in achieving FI targets. Their Salary and allowance need to be focused so that people will start showing interest to this profession. Development of Innovative banking products can definitely bring rural people in to banking system e.g. Recurring deposit of any amount. Performance of Microfinance organization and their interest charging structure must be monitored by regulating authority. Financial inclusion must be depoliticized and no to political pressure while availing of loans under Mudra or Stand up India Scheme.This research work is a combination of secondary and partly primary and observational experience of the researcher. Quantitative Data has been collected from the sources of the Annual report 2017-18 of Reserve Bank of India and Department of Financial Service (Ministry of Finance).
Paper ID: 15202