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Financial Inclusion in India: Integration of Technology, Policy and Market at Bottom of the Pyramid

13 Pages Posted: 24 Jun 2010 Last revised: 3 Apr 2015

Jatinder Handoo

FINO PayTech Ltd.

Date Written: June 22, 2010


Financial inclusion is one of the top most policy priorities of the Government of India. Ever since the UPA government has come into power in the center, one of the most visible aspects of the governance has been agenda of social inclusion of which financial inclusion is an integral part. Taking cue from the state proclivity towards inclusive growth agenda, the Reserve Bank of India (RBI) has taken a proactive role in ushering the enabling environment for expediting financial inclusion across length and breadth of the country through bank led model. To reach out at 400 million plus un (der) banked population at pace with profitability is the single most important challenge faced by the multistakeholders, particularly banks and delivery channels. And here comes in the role play of technology led models and their efficacy over traditional brick and mortar branches.

The paper is broadly divided into two parts, in the first part it takes an overview of the existing technology led branchless models of financial inclusion across the world and highlights how populations at bottom of the pyramid across the spectrum of developing world have gained access to financial services. The paper also highlights role of regulatory environment which has paved path for development of technology led models in the emerging economies of the world. In the second part, the paper vividly describes various technology led models of financial inclusion – particularly branchless, which have mushroomed in India for last few years, the changes in regulatory environment and customer expectations due to multiple options available.

Finally the paper sums up with an open ended question what does future hold for millions un(der) served in India and how does technology, banking and public policy could better address the developmental question of financial exclusion.

Keywords: Agent banking, biometric technology, financial inclusion, public policy

Suggested Citation

Handoo, Jatinder, Financial Inclusion in India: Integration of Technology, Policy and Market at Bottom of the Pyramid (June 22, 2010). Available at SSRN: or

Jatinder Handoo (Contact Author)

FINO PayTech Ltd. ( email )

601 & 602, A Wing, Godrej Coliseum
Sion Road
Mumbai, 400022

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