1. Financial Inclusion : The Task Krishan Jindal

2. Financial Inclusion - Definition Delivery of financial services at an affordable cost to vast sections of disadvantaged and low income groups

3. Financial Services includes Savings Credit Insurance Remittance facilities etc.

4. NSO Survey (2003) on indebtedness of farmers 27% farm household only have access to formal credit sources. Only 4% in NE Region have access to formal sources. Only 20% in NE Region borrow both from formal and informal sources (Tripura State – 49%) More exclusion among marginal farmers and tribal families.

5. Demand Deposit Bank Accounts 41% population do not have a Demand Deposit Bank account 61% unbanked in rural areas 63% unbanked in NE Region (62% in Tripura State)

6. Number of Loan Accounts 14% of adult population has loan accounts 9.5% in rural areas 7% in NE Region

7. Why Financial Inclusion ? High transactions costs of borrowers High transactions costs of savers High transactions costs of banks High risk cost Inappropriate products

8. Who are excluded ? Marginal Farmers Landless Farmers Oral Lessees Self Employed Urban slum developers Migrants Minorities Social excluded groups Senior citizens Women

9. Measures for promoting financial inclusion Products No frill account KYC norms simplified Introduction of GCC OTS for overdue loans upto Rs.25,000/- KCC

10. Measures for promoting financial inclusion Use of intermediaries Linkage of SHGs with bank 29 lakh SHGs credit linked 42 million families covered Linkage of MFIs with banks Business facilitators and correspondence model.

11. Measures for promoting financial inclusion Others IT solution for financial inclusion Credit counseling and financial education Revamping of RRBs and cooperative banks

12. 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

13. Financial Inclusion : Challenges Holistic approach Viability Scalability Adoption of technology Use of intermediate agencies.

14. Thank you