Financial Inclusion: The Indian Perspective
Financial Inclusion: The Indian Perspective
Financial Inclusion: The Indian Perspective
Empowerment
Bank A/Cs - Credit Cards of SHGs
Savings
Payments +
Remittances Financial Inclusion Insurance
Lack of
Financial Affordable Credit Assets (for
Advice
Collateral)
Why Financial Inclusion?
C o m m e rc ia l B a n k s
SC Bs SC AR D Bs 1 4 ,5 0 1 B ra n c h e s
(3 0 ) (2 0 ) ( r u r a l) 105
D C C Bs PC AR D Bs
(3 6 7 ) 768
3 3 4 1 1 B ra n c h e s
PAC s s e m i-u rb a n a n d ru ra l
1 ,0 5 ,0 0 0
IMPLICATION FOR FINANCIAL INCLUSION
(Contd.)
IMPLICATION FOR FINANCIAL INCLUSION (Contd.)
R u r a l H o u s e h o ld s
( 1 4 7 . 9 m illio n )
F a rm e rs N o n F a r m in g H o u s e h o ld s
8 9 . 3 5 m illio n h o u s e h o ld s 5 8 . 5 5 m illio n
S m a ll a n d M a r g in a l F a r m e r s O t h e r t h a n s m a ll a n d m a r g in a l fa r m e r s
7 4 . 9 7 m illio n 1 4 . 3 8 m illio n
5 1 . 6 % o f t h e r u r a l h o u s e h o ld s a r e e x c lu d e d .
Analysis of Financial Inclusion
State wise Exclusion
Extent of States
Financial
Exclusion
> 75% Meghalaya, Arunachal Pradesh, Mizoram,
Manipur, Assam, Uttaranchal, Jharkhand
50 to 75% Bihar, Chattisgarh, Orissa
Himachal Pradesh, J & K, UP, Nagaland, Tripura,
Sikkim
25 to 50% Karnataka, Kerla, MP, Maharashtra,
Punjab, Tamilnadu, West Bengal,
< 25% Andhra Pradesh,
Analysis of Financial Inclusion
Social Population % %
Group Included Excluded
S.C 15592.6 50.23 49.77
S.T 11924.1 36.32 63.68
OBC 37043 51.42 48.58
Others 24688.4 49.42 50.58
Total 89248.1 48.64 51.36
Initiatives for Financial Inclusion
a. SHG - Bank Linkage Programme - 2.2 million SHGs with loans outstanding of
Rs.11397.50 million (average size of SHG - 15 members and 90% women SHGs)
b. MFI - Bank Linkage
c. Women Entrepreneurs Development Programmes (Micro Enterprises) with NGO
assistance
i. Credit - marketing related
ii. Rural Entreprenurship programme with the help of Banks and NGOs (25% women)
iii. Area Development Programmes in clusters - skills upgradation and capacity
building
d. Farmers’ Clubs 18,000 with the help of banks for technological transfer, banking
promotion schemes
e. Joint Liability Groups of Farmers (850 JLGs with Rs. 124 million finance) (4-10
farmers)
Initiatives for Financial Inclusion
f. Kisan Credit Cards - for quick credit to farmers 59.1 million cards
g. Swarojgar Credit Cards - for unorganised poor people - both rural and
urban
h. Gramin Tatkal Card - project for loans upto Rs.50,000 without collateral
for families credit needs. (pilot schemes launched)
i. Business correspondent and faciliators (January 2006 - to enhance
rural outreach
j. SGSY Scheme for poverty alleviation (restructuring various credit
programmes like IRDP, TRYSEM , SITRA, DWACRA etc.) Cluster
Development Programme (for Credit intensification) with shared
infrastructure, markets, services, common opportunities and threats
(101 already started)
Financial Exclusion means lost or neglected business
opportunities as it limits growth and effectiveness.