A Wealth Incorporation Publication CHRIST UNIVERSITY ...

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Financial Inclusion: Is it only covering the Unbanked?Eldho PouloseII MBA KIt all started in Mangalam village in the year of 2005 where all households ofthe village were provided with No frill bank accounts and other bankingfacilities. But the approach of Apex bank towards financial inclusion clearlydefines that it is not only a basic process of equipping everyone with bankaccounts. The mandate of RBI is to find a solution for financial exclusion overa period of time and to make people more aware and ensuring theirparticipation in terms of financial market and services. RBI has adoptedbank-led model Financial Inclusion programs along with other non-bankingentities who were allowed to join the Financial Inclusion Initiatives. Being abasic service, banks has been encouraged by Reserve bank to leverage theirtechnology, which will result in widening and penetration of financial servicesat a minimum cost.The banks have to look financial inclusion activities with a business mindinstead of treating it as a charity or social service. Only a commercially viableand self-sustainable financial initiative can help the banks for expanding theiroperations and their by covering more unbanked areas. For expanding theirfinancial inclusion initiatives banks need to adopt innovative business modelsand delivery channels along with customized products which can satisfy theunique financial needs of financially excluded population. The structured andplanned approach of RBI has provided banks the opportunity and the room toidentify, formulate their own strategies in order to achieve their targets throughthe proposed financial inclusion initiatives.Considering the geographical features and huge scale of operations required forfinancial inclusion RBI has created a lusty institutional structure whichincludes The Financial Stability and Development Council (FSDC) chaired bythe Union Finance Minister, Financial Inclusion Advisory Committee (FIAC),35 State level Bankers’ Committees, 644 Lead District Managers, more than100000 bank branches and more than 700 Financial Literacy Centres toenhance more financial literacy. Also banks has been advised to prepare boardapproved second phase financial Inclusion Plans which extends from 2013-2016, prioritizing new branch openings in rural unbanked areas and conductingfinancial literacy camps along with many other Financial inclusion programs.It is very clear that creating bank accounts for financially excluded populationis not the final objective .The effective utilization of financial infrastructurewhich is possible only through financial literacy is the ultimate aim of financialinclusion initiatives. Financial inclusion should result in availability of timelyfinancial services, good credit facilities at minimum cost, financial literacy andparticipation of mass in financial activities across the country. For this, alongwith banks other financial institutions should gain the trust and confidence ofpopulation and thereby can ensure people participation.Reference:http://www.rbi.org.in/scripts/BS_SpeechesView.aspx?Id=8139
Page 1 and 2: July 16, 2013Vol. 7Issue 3Chaanakya
Page 3 and 4: NATIONAL NEWSSrivishnu GarbhamII MB
Page 5 and 6: INTERNATIONAL NEWSSailabala NayakII
Page 7: RATES AND GRAPHGaurav AgarwalII MBA
Page 11 and 12: FOOD SECURITY BILL ::SAFEGUARDING T
Page 14 and 15: Annual results in brief(Rs crore)Ma
Page 16 and 17: ALUMNI SPEAK:: Sana Jameel HashimMi
Page 18 and 19: COMMODITY:: GOLDVattam BhargavII MB
Page 20 and 21: DID YOU KNOW ?THE CONCEPTS OF - Ham
Page 22 and 23: MAJOR PLAYERS:Insurance sector incl
Page 24 and 25: NAME OF THECERTIFICATION/COURSEInte
Page 26 and 27: Answers:1.Backpricing 2.FlowerBond
Page 28: chaanakya`About UsChaanakya is the

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