Financial inclusion for women

Abstract

Financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs transactions, payments, savings, credit and insurance delivered in a responsible and sustainable way. (World Bank) As an enabler of economic development, financial inclusion is a policy agenda of every government. It is viewed as an essential policy instrument to reduce poverty and socio-economic inequalities in any country. Opening a transaction account is perceived as a first step towards financial inclusion since it enables people to store, send and receive money. Access to a transaction account also provides a medium to carry out other financial services, such as loans, insurance, payments and remittance facilities. In 2008, Rangarajan Committee defined financial inclusion as the process of ensuring access to financial services and timely and adequate credit needed by vulnerable groups such as weaker sections and low-income groups at an affordable cost . Thus, access to easy and affordable financial services can provide weaker sections and low-income segments with increased opportunities and help them come out of the vicious cycle of poverty. Provision of such services also acts as a cushion in times of economic shocks. Over the last decade, there has been a growing realization of importance of financial inclusion and its impact on economic growth of India. Starting in 2006, GoI and RBI have made extensive efforts to drive financial inclusion in the country. Account opening drives like Swabhimaan (2011) and more recently, Pradhan Mantri s Jan Dhan Yojna (PMJDY), have led millions in rural India to open a savings bank account. Moreover, financial service providers, such as banks and MFIs have also not deterred to penetrate deep in to the rural areas. However, even these efforts have not been able to create a uniform impact among Indian population. Wide disparities in inclusivity of men and women continue to persist.