A Study on Banking Penetration in Financial Inclusion “With Special Reference to Tamilnadu”

Today the term ‘bottom of the pyramid’ refers to the global poor most of whom live in the developing countries. These large numbers of poor are required to be provided with much needed financial assistance in order to sail them out of their conditions of poverty. Accordingly, there is felt a need for policy support in channeling the financial resources towards the economic upliftment of poor in any developing economy. Financial Inclusion is considered to be the core objective of many developing nations since from last decade as many research findings correlate the direct link between the financial exclusion and the poverty prevailing in developing nations. Financial inclusion is an attempt to provide financial access and services to weaker sections and low income groups, thus eliminating poverty. An inclusive financial sector development makes two complementary contributions to poverty alleviation: financial sector development is a driver of economic growth which indirectly reduces poverty and inequality and appropriate, affordable, financial services for poor people can improve their welfare. The study conducted is to identify how financial inclusion has had an impact on the state of Tamilnadu and how financial inclusion has helped indirectly in the improvement of financial literacy and reduction of poverty. The study conducted will bring forth the improvement in the state of Tamilnadu after the implementation of financial inclusion in terms of financial literacy, reduction of poverty and how the banking sector alone has managed to engulf a vast part of the state into the fold of financial inclusion.