Community based organizations and financial inclusion in India: Prospects, challenges and the way forward

The role of financial inclusion in empowering marginalized rural populace has gained considerable recognition among academia and social researchers. This has been largely possible owing to the several joint initiatives, programs, and research being executed by the Government, civil society, private players, and communities across the globe. The study tries to explore the role of community-based organizations like SHGs in ensuring economic security for the rural populace in India. Considering that agriculture is one of the chief sources of sustenance for the majority of such populace the study discusses the potential role that CBOs can play in raising agricultural productivity and securing livelihood. The process of economic growth, especially when it is on a high growth line, must attempt to involve all sections of society. Lack of access to financial services for small/ marginal farmers and weaker sections of society has been recognized as a serious threat to economic progress, especially in developing countries like India. To target comprehensive financial inclusion in rural India the challenges that such CBOs are facing need to be arrested. Focus Group Discussion and Key Respondent Interviews were conducted in the Kalahandi and Koraput districts of Odisha where such challenges were discussed. Based on discussions with multiple Government and CSO stakeholders a list of possible suggestive measures has been documented to effectively address these challenges.