Role of Indian Banking System and Financial Inclusion for Rural Development

Financial inclusion is a process to make the financial services sector accessible at an affordable fair and in transparent way by the institutional players to these vulnerable groups. Indian banking sector is one of the main pillar of this Indian financial system. The financial inclusion does not mean giving credit to poor or merely opening an account, it also covers all other formal financial services such as insurance, borrowings, savings and other remittance facilities. This article also reveals the need of financial inclusion for the empowerment of the rural population. The banking sector in India is contributing great efforts to increase the financial inclusion in rural India. This work explains the various initiatives by the Reserve Bank of India by considering the rural area for development. The focus should be at the grass roots level to check whether the schemes or initiatives taken by various stakeholders are being implemented successfully or not. With this regards, coordination is needed among the various stakeholders to fulfill the goal of financial inclusion.