Global Financial Inclusion Environment: The Nexus to India

Abstract

Financial inclusion can really pick up the financial conditions and standards of living of the disadvantaged groups. Various countries are promoting financial inclusion across the world. The list includes Peru, Colombia, Philippines, Pakistan, Chile, Tanzania, Bolivia, Mexico, Bangladesh, South Africa, Kenya and Brazil. Particularly, Brazil has succeeded in financial inclusion using Business Correspondent Model. India also has a similar demographic profile can emulate the policies as successfully as implemented by Brazil. Financial inclusion has been accorded high importance by the Reserve Bank to aid the inclusive growth process of the economy. There have been formidable challenges in this area such as bringing sections of society that are financially excluded within the ambit of the formal financial system, providing financial literacy and strengthening credit delivery mechanisms. The present paper explains the Financial Inclusion: Global Scenario, Financial Inclusion Environment Ranking Methodology, Region-wise trend analysis of Average Financial Inclusion Index, Current Scenario of Financial Inclusion in India, Key Parameters of Financial Inclusion in India, Trends in India’s overall Financial Inclusion Index Score, Challenges of Financial Inclusion in India and the measures to overcome such challenges.

Keywords: Financial Inclusion, Financial Exclusion, Inclusive Growth, Global Financial Inclusion Index (Findex), "No-frills‟ Accounts, etc.

JEL Classification: G21, G28.