Demonetisation and financial inclusion in India

The issue of financial inclusion is emerging as the new paradigm of economic growth. Financial inclusion plays a major role in driving a way the poverty from the country. Financial inclusion refers to delivery banking services to masses including privileged and disadvantaged people at an affordable terms and conditions. Financial inclusion growth is possible when there are people oriented policies and programmes initiated by the government. Though India is one of the fastest growing economies, unfair distribution of resources resulted in unequal growth. The world is eagerly watching India with high expectations as India is poised to become economic leader of the region. It is an imperative that India becomes shock proof to the financial crisis and other threats. In this backdrop India has taken seriously the cause of financial inclusion years ago and the results were not encouraging. However, the current times are more pressing. This need of the hour must be dealt with a serious action towards financial inclusion. To become the strong economy, India needs to eradicate black money, corruption and financial crimes. In this technological era and with largest youth population, this is the best time to strike the chord of second financial reforms. The hurdles are lack of financial inclusion and financial illiteracy. It is very ironical that, though India is the largest tech savvy youth population and growing literacy, many are still financially excluded. This paper deals with the issues related to demonetisation and its linkage with financial inclusion. The paper also discusses the economic imperatives of demonetisation in India and its aftermath.