Financial Inclusion as a Precursor to Economic Development and Change

Today Financial Inclusion is the most vital issue that is being talked by the Government, Researchers and many Economists. It has grabbed the attention, and has become the major concern for the economic-policy decision-makers. The neglected and, underprivileged section of the society lacks the availability of financial services, which is essential for them, in order to plan and to invest in small business so that they can earn their living, but as they are in dire need for fund, they borrow from the private money lenders, that provide them at high rate of interest and are often found to be exploitative at the end. Hence availability of formal financial services is a prerequisite in the alleviation of poverty and also it leads to economic growth. To eliminate poverty, and raise the living standards of the society financial inclusion is a crucial element. Financial exclusion hence is the major reason for the poverty of mainly the rural population and is the hurdle in the country's economic growth and prosperity. This Research paper has made an attempt to understand the Financial Inclusion and its importance in eliminating the poverty and in improving social and economic development. The paper tries to explain the need for achieving complete financial inclusion and the initiative taken by the banks towards it. This paper also tries to address all the concerned issues that directly or indirectly influence the financial system in achieving maximum of financial inclusion.