Financial inclusion in economic development of India

Banks were invented by Ancient Mesopotamians where the royal palaces or temples would provide a safe place to store valuable commodities and grains. The first Bank in the United States was founded in 1791 in Philadelphia. Recent changes have reformed the Banking Sector worldwide. Commercial Bank answers to those challenges by implementing change program called PEGASUS. The role of Commercial Banks in economic development rests chiefly on their role as financial intermediaries. Banks have become an essential part of economic life in every field. Banks are the best position to lead financial inclusion. They have just got more teeth from the banking correspondent model and the sharper focus on self help groups. The nationalization of major commercial banks in1969 was an important landmark in the history of financial inclusion it was felt that the nationalized banks can make a big push into the rural areas.To some extent, this has happened. But the fact remains that despite Avery focused expansion of branches in the rural and semi_ urban they have not been able to reach out to the poor farm households and therefore a rethink has started now as to what more can be done.