Introduction: financial inclusion has emerged from time to time all of them reckoning the need for delivery of banking and financial services, at an affordable cost, to the people who do not have access to financial services, to the people pertaining to low income groups. The providers for such facilities are the commercial banks operating in the region. at the same time has been issuing guidelines to the commercial banks to promote the process of financial inclusion at the same time R B I has been issuing guidelines to the commercial banks to promote the process of financial inclusion The RBI has permitted and recommended the use of some other channels of promoting financial inclusion to the commercial banks such a involving self help groups , Micro-finance institutions , Regional Rural Banks

Objectives To review the present status of the financial inclusion in India in particular and the world in general. To highlight the initiatives taken by the Government of India and RBI for promoting financial Inclusion. To analyze the issues and challenges involved in the adoption of financial inclusion

Financial Inclusion – Global Scenario Force in UK has identified three priority areas for the purpose of financial inclusion, viz., access to banking, access to affordable credit and access to free face-to-ace money advice . In USA, varying from State to State, 10 to 20 per cent of US households lack a bank account. The Government has taken various measures to deal with the problem of financial inclusion

Financial inclusion in India The Indian economy is growing at a steady rate of 8.5% to 9% in the last five years or so. . Most of the growth is from industry and services sector. Agriculture is growing at a little over 2%. Limited access to affordable financial services such as savings, loan, remittance and insurance services by the vast majority of the population in the rural areas and unorganized sector is believed to be acting as a constraint to the growth impetus in these sectors

Importance of financial inclusion Manage their money on a day-to-day basis, effectively, securely and confidently Plan for the future and cope with financial pressure, by managing their finances to protect against short term variations in income and expenditure, and to take advantage of longer term opportunities, and Deal effectively with financial distress, should unexpected events lead to serious financial difficulty. People who achieve these objectives will enjoy significantly improved outcomes.  

Recent initiatives by Reserve Bank of India The Reserve Bank has undertaken a number of measures with the objective of attracting the financially excluded population into the structured financial system . For low income groups both in rural and urban areas the procedures for opening accounts has been simplified . Banks have been asked to consider introduction of a General purpose Credit Card at their rural and semi urban branches . A simplified mechanism for one-time settlement of overdue loans up to Rs. 25,000/- has been suggested for adoption.

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