Banking Inclusion-A Gateway to Financial Inclusion

Financial inclusion is the road that India needs to travel towards becoming a global player. Financial access will attract global market players to our country and that will result in increasing employment and business opportunities. Banking industry has shown tremendous growth in volume of operations, efficiency and use of technology to provide financial services during the last few decades. Measurement of Financial Inclusion implies to evaluate the extent of accessibility, availability and usage of financial services like saving, credit, insurance, and remittance facilities, among many other such services. Access to basic banking services provides congenial conditions for growth of individuals, households and private institutions. Also, social factors like unemployment and illiteracy are closely connected to the success of financial inclusion. Thus, a sustainable social development can be simultaneously achieved alongside Financial Inclusion. Finance has become an essential part of an economy for development of the society as well as economy of the nation. For this purpose a strong financial system is required not only in underdeveloped countries and developing countries, but also in developed countries for sustainable growth. A major business opportunity is for the banks in developing a stable, retail deposit base and in curbing volatility in earnings with the help of a diversified portfolio. The recent crisis has, in fact, underscored the need for reducing banks ’reliance on wholesale deposits and borrowed funds and cultivating a retail portfolio of asset and liabilities for financial stability. This study is based on secondary data; it is measure the factors influencing financial inclusion in Tamilnadu. Principal Component Analysis has used to co-coordinate the data.