A Study of Development towards Financial Inclusion in India

This paper discusses about the different initiatives taken by the government and the challenges faced by the demand side with regards to financial inclusion in which India is now moving towards full financial inclusion by the year 2020. The author is of the opinion that the demand side i.e. the customer, should be strengthened and made capable, so that they can open a bank account and operate it for saving and investment. If we concentrate on the demand side, full financial inclusion can be definitely achieved. The author also has faith in the fact that the income and education level reservation will help in increasing the financial literacy and financial capability which will indirectly help in reducing poverty. Out of the three stages of financial inclusion initiatives, the first stage i.e. from 2010 – 2013, has been completed. The second stage i.e. from 2013–2016, is in progress now. For strengthening the supply side, the government of India and the Reserve Bank of India have suggested and implemented many measures and initiatives. In the second and third stage (i.e. from 2016 – 2019) attention should be given towards improving the capability of the customers to make them bankable. To achieve this, proper steps should be taken towards education, employment and taxation structure which will help in reducing the gap between the rich and the poor. This will facilitate full financial inclusion.