Dwindling Levels of Financial Inclusion: An Exploratory study in Lucknow, India

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Kumar, Mohit ; Mishra, Dr. Kushendra (2015)
  • Publisher: Journal Of Business Management & Social Sciences Research
  • Journal: Journal Of Business Management & Social Sciences Research (issn: 2319-5614, eissn: 2319-5614)
  • Subject: Business Management; Financial Management | Financial Inclusion, Financial Access, Financial Exclusion, RBI

The access to basic financial services for disadvantaged groups is regarded as a prerequisite for reducing poverty and catalyzing the engines of economic development. Hence, financial inclusion becomes very important. Though the government and RBI have taken several steps to improve the supply side of financial inclusion, these measures will not work without adequate demand for financial inclusion. The demand for financial inclusion means the need and use of the same from the people in terms of the need to open a savings account or the need to avail the credit facilities from the formal financial channel available. The only way to keep up with the economic growth is to ensure that the capital formation is always on track. This capital will be generated only when the savings of the large masses will be mobilized. Since Accessibility is the most influential factor of the demand for financial inclusion the RBI should take some measures that will make financial services more accessible to those who are financially excluded. The people should be made aware of the available facilities and its related advantages to make use of our financial system for their betterment and also for the nations betterment. This paper intends to explore into financial access which plays a pivotal role in understanding the progress of financial inclusion. The research highlights that there are various reasons for low level of access which needs to be taken care of to achieve better and faster growth with respect to financial inclusion. Each reason needs to be catered to the possible extent so as to ensure that the overall demand is generated which will provide an added incentive to increase the supply as well. Hence, the efforts of the government and RBI to improve the supply of financial services will end up fruitless if the demand side of financial inclusion is not taken proper care of.
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