There has been a business revolution since few years with the upgraded business laws and technology being a crucial factor for business. This is achieved by closely bringing all the areas of business service and literacy provided to even the most backward areas.
One such area of upcoming revolution is financial inclusion. As the term suggests it means, including all the areas in a country or particular place in delivering financial services such as banking, payments, credit facilities for these areas. It is also called a inclusive financing as the financial services are made inclusive to less privileged areas for their better reach to the financial services.
Objectives of financial inclusion:
- It helps to offer people with affordable financial services such as credit facilities, loan services, fund transfer services and other payment facilities.
- It builds proper financial institutions which cater to the needs of the people and which follow the rules of the central financial authorities.
- Helps to maintain financial sustainability so that the less privileged people get to use the services easily.
- It helps to increase the awareness among the underprivileged class of people and make this facility more global.’
- It helps to improve the financial literacy of a nation when more people get involved in the process.
- It helps to bring the digital financial solutions to all the classes of people so that not only the urban areas get the benefit from these.
- It brings mobile banking and ATM machines to even the poorest section of people for them to benefit out of it.
- It brings the facility of tailor-made solutions to the people who are new to this financial service and hence make it more easier for them to use it.
- There are many governmental and non-governmental institutions working towards this mission of bringing financial services closer to all those who are in need of it.
Need for financial inclusion
Financial inclusion improves a country’s financial development comprehensively. It makes the economic resource more in use and enables the savings mentality in the minds of the people irrespective of they being rich or poor.hence it regulates and contributes the country’s financial growth in a consistent manner.
Poor people are usually cheated by rich landlords and local financial and unauthorized institutions which happens due to their financial illiteracy. This can be eliminated completely with financial inclusion as the greatest solution for it.
It helps the poor people to benefit from the services in banking and other credit facilities and includes them in the country’s financial chain and also helps them to be aware of the technology development happening in the current business world.