Online published on 28 February, 2020.
The 11th five-year plan (2007–2012) envisions inclusive growth as a key objective. Inclusive growth refersto providingequitable opportunityto all the participants of economic growthand the distribution of returns to all the sections of the society as a result of economic development. In other words Inclusive growth aims to provide access to markets, access to resources and an unbiased regulatory framework. The rich and the poor divide which exists in India is quiet visible in both the rural as well as the urban population of the country. In the rural areas the poor and the underprivileged comprise of the small farmers, landless labourers and the artisans. The main cause of this poverty is irregular income, poor or no savings, lack of financial education, heavy dependence on indebtedness and other economic and social factors. In their annual report of 2012, Reserve Bank of India states that the national average of poverty in India stands at 21.92%. The role of the financial sector particularly the banking sector through the financial inclusion drive is very critical in achieving inclusive growth. The 2011 census report claims that only 58.7% of households are having access to banking services in India. However, on a positive note when compared with the 2011 census, the access to banking services has increased significantly because ofgrowth in rural banking in the country. The challenges are immense in front of the formal financial system in the country but the confidence is there that the ultimate objective of achieving 100% financial inclusion will be fulfilled. The banking sector in India has recognized the importance of inclusive growth and as a result has endured a few essential changes over the period of the last twenty years. Financial inclusion is the new model of economic growth which plays a major role in eradicating poverty. The concept of financial inclusion is primary to the process and efforts for achieving inclusive growth and sustainable development of the country.
The present study aims to identify the reasons for remaining financially excluded in the Varanasi district and to suggest recommendations based on the findingsso that benefits of financial inclusion can be implemented for the rural poor. This thesis is divided into five chapters with details listed below:
Chapter I: Introduction to the topic of Mainstreaming the Financially Excluded. Chapter II: Literature Review and Research Methodology. Chapter III: Profile of the Banks operating in the Rural Areas of the Varanasi District. Chapter IV: Analysis of Data. Chapter V: Findings, Conclusions and Recommendations.
It is expected that the research can bring some meaningful value addition in the topic of financial inclusion and financial exclusion specifically for the Varanasi district of Uttar Pradesh.
