Role of Private Sector Banks for Financial Inclusion
Anjum, B., Tiwari, R. (2012), Role of private sector banks for financial inclusion, Zenith International Journal of Multidisciplinary Research, 2(1), 270-280.
11 Pages Posted: 3 May 2021
Date Written: January 31, 2012
The article explores the geographical distribution of private sector banks in India and its impact on financial inclusion. The article evaluates the correlation of number of private bank branches with economic freedom and ratio of development expenditure of states to gross state domestic product. At end March 2010, 50.6 million no frills account were opened by the banking system. The banks have a challenge to keep these accounts operational. Banks were advised to provide small overdraft in these accounts, and up to March 2010 banks provided overdraft of Rs. 27.54 crore. No frills account provides the opportunity for a common man to open bank account. These accounts have no pre condition and low minimum balance maintenance. RBI initiated scheme of no frills account in 2005 to improve financial inclusion.
Keywords: Financial Inclusion, Gross State Domestic Product, No Frills Account
JEL Classification: G21
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