TITLE OF PAPERS: Financial Inclusion: A Means of Inclusive Growth
(Successes and Failure)
Name: ANKUR AGGARWAL
Designation: ASSISTANT PROFESSOR
Ankur Agarwal is currently an Assistant Professor (Selection Grade) at the School of Business Studies, Sharda University. Currently he is also coordinator of B.Com. (Professional) Program. He is also pursuing a Ph.D from Sharda University on the topic: ‘Risk management pattern of retail investors, with special reference to NCR region’.
As a part of his teaching portfolio he specializes in the areas of Corporate Finance, Security Analysis, Financial Inclusion and Investment Banking. Having more than 10 years of teaching, administrative and research experience, Mr Agarwal has made 5 Research Publications in the referred journals of national and international repute.
Mr Agarwal has also attended and participated in various national and international conferences on contemporary issues. He is also a SAP(Fi) consultant and has to his credit 4 International projects as a team member transforming financial processes of the companies on SAP environment.
AUTHOR’S NAME: 1. ANKUR AGGARWAL
ASSISTANT PROFESSOR,
SHARDA UNIVERSITY, GREATER NOIDA.
EMAIL ID:
CONTACT NO: +91-9250663828
2.MRIDUL DHARWAL
ASSISTANT PROFESSOR,
SHARDA UNIVERSITY, GREATER NOIDA.
EMAIL ID:
CONTACT NO: +91-9212523101
Brief Profile: Name: MRIDUL DHARWAL
Designation: ASSISTANT PROFESSOR
He is currently an Assistant Professor at the School of Business Studies.He specializes in the areas of Managerial Economics, Macro Economics, Economic Environment of Business and Human Development. Having more than 05 years of teaching and research experience. Have 05 research publications in the referred journals of national and international repute. Attended and Participated in various national and international conferences on various contemporary economic issues. Also involved with several research and administrative responsibilities like BBA COORDINATORSHIP. He has qualified UGC- NET and RPSC- SLET Examination. He has achieved many awards and certificates in academics.
Financial Inclusion: A Means of Inclusive Growth
(Successes and Failure)
Abstract
There are large numbers of people in the country who have not accessed the formal financial system. With an appropriate business model, the formal financial system can realize the huge potential coming from the unmet demand for financial services from such ‘excluded people’.
Thus focus should be on creating customized, composite and yet a simple delivery system.The banking products should be improved like insurance and remittance also need to be developed.
However, the banks themselves will not be able to achieve the goal more particularly in the last mile and need certain intermediaries for assistance. Microfinance Institutions (MFI’s) have proved that they can reach the bottom of the pyramid with a profitable way. The Self help Group ( SHG’s) – Bank linkage model is another channel.
Other innovative channels also need to be developed finally; the ‘financially excluded’ section needs to be educated about the benefits of being a part of the organized financial system.
Extent of Exclusion
NSSO data reveal that 45.9 million farmer households in the country (51.4%), out of a total of 89.3 million households do not access credit, either from institutional or non – institutional sources. Further, despite the vast network of bank branches, only 27% of total farm households are indebted to formal sources (of which one-third also borrow from informal sources). Farm households’ not accessing credit from formal sources as a proportion to total farm households is especially high at 95.91%, 81.26% and 77.59% in the North Eastern, Eastern and Central Regions respectively. Thus, apart from the fact that exclusion in general is large, it also varies widely across regions, social groups and asset holdings. The poorer the group, the greater is the exclusion.
Financial inclusion can be substantially enhanced by improving the supply side or the delivery systems, it is also important to note that many regions, segments of the population and sub-sectors of the economy have a limited or weak demand for financial services. In order to improve their level of inclusion, demand side efforts need to be undertaken including improving human and physical resource endowments, enhancing productivity, mitigating risk and strengthening market linkages.