The concept of inclusive growth is multifarious and has financial inclusion as one of its foremost foundation blocks. India needs inclusive growth in order to clinch expeditious disciplined growth for sustainable, steady, secure and equitable distribution of wealth, prosperity and development. Financial inclusion is providing integrated services to all the sections of the society by curbing the threats to economy. Facilitating access to financial services accelerates thrift and promotes habit of saving. Greater financial inclusion by expansion of bank branches, strengthening of financial literacy, better access to finance, rapid credit growth, eased transactions and diversification of bank deposits reduces income inequality and poverty, generates employment and stimulates economic development and socio-political stability. But at the same time, financial inclusion clients are considered as opaque and risky. Inclusive growth if targeted systematically can positively accord with financial health and soundness, asset building and economic mobility, emancipation and empowerment of the vulnerable section. The present paper is an attempt to comprehend and understand the feasibility of financial inclusion under asymmetric information in an advancing country like India wherein ‘financial inclusion’ is perceived as a counterpart and strategy for ‘inclusive growth’.
Financial inclusion, inclusive growth, asymmetric information
