1. ANUJA KUMARI

2. “The process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost” The Committee on Financial Inclusion 2008

3. FINANCIAL INCLUSION ENVISAGES Providing Financial Facilities TO Hitherto excluded /Disadvantaged group AT Affordable Cos t Financial Services Include  Deposits  Credits  Ancillary Services Include:  Remittances  Insurances  Face to Face Advice

4. For inclusive growth A necessity for sustainable overall economic growth Lift financial condition & standard of life of underprivileged Empower un served & underserved sections of society In developed economies, focus is on small population In developing economies (India), focus is on excluded majority

5. Marginal Farmers Landless Farmers Oral Lessees NER, Eastern & Central Regions Self Employed Urban slum dwellers Migrants Socially excluded groups Women Children Old people Physically challenged people EXCLUDED / DISADVANTAGED

6. High transactions costs of borrowers High transactions costs of savers General decline in investments Small business suffer Exclusion from formal credit markets leading to approaching informal/ exploitative markets Increase of unemployment Higher incidence of crime Can lead to Social Exclusion

7.  Remote, hilly & sparsely populated areas with poor infrastructure and difficult physical access  Lack of awareness, low income, social exclusion, illiteracy  Distance from bank branch, branch timings, Cumbersome Documentation /procedures.  unsuitable products  Higher transaction cost  Ease of availability of informal credit  KYC – documentary proof of identity/ address  Rich have no compassion for poor

8. No frill account KYC norms simplified Introduction of GCC OTS for overdue loans up to Rs.25,000/- KCC Usage of Biometric ATMs in Rural & Semi Urban areas Bank utilising services of NGOs, SHGs, micro finance institutions.

9. Bank accounts – check in account Immediate Credit Savings product Insurance – Healthcare Mortgage Financial advisory services Entrepreneurial credit

10. Services of business facilitators/ correspondents (BC) for extending banking services Credit Counselling & financial education Multilingual website w.r.t. information on Banking Banks to identify households with no bank accounts & to open at least one account per house Revamping of RRBs and cooperative banks Banks with insurance companies to provide, disability & health cover.

11. Target group for Financial Education School /college children, women, rural/ urban poor, defence personnel, senior citizens Funds for Financial inclusion Micro Finance Development and Equity Fund Financial Inclusion Fund for Development and Promotional Interventions Financial Inclusion Technology Fund to meet cost of technology

12. Geographical coverage 5.2% villages have Bank branch Farmers coverage- Out of 119 million farmers, small and marginal farmers are 97.7 million (82.1 %)

14. Scaling up of activities Transaction cost too high Appropriate business model yet to evolve BC model too restrictive Limitation of cash delivery point Lack of Interest / Involvement of Big Technology Players

15. The union budget 2009-10, has underlined the need to strengthen the mechanisms for inclusive growth for creating about 12 million new work opportunities per year, reduce the proportion of people living below poverty line to less than half from current levels by 2014 and to ease the delivery mechanism for primary health care facilities with a view to improve the preventive and curative health care in the country

16. Appropriate Technology Appropriate and Efficient Delivery model Mainstream Banks’ determination and involvement Strong Collaboration among Banks Technical Service Provider, BC Services Involvement of all Liberalisation of BC model

17.  Banking services to every village with a population of over 2000 at least once a week on regular basis by March 2011  State Govts to ensure development of Infrastructure where penetration by the formal banking system is required  Generate awareness of the various banking policies and regulations relating to the common person  Expedite use of IT solutions for various financial products like NREGA