This website uses cookies to ensure you have the best experience. Learn more

Financial Inclusion Essay

933 words - 4 pages


Financial inclusion is the delivery of financial services at affordable costs to sections of disadvantaged and low income segments of society. Unrestrained access to public goods and services is the sine qua non of an open and efficient society. It is argued that as banking services are in the nature of public good, it is essential that availability of banking and payment services to the entire population without discrimination is the prime objective of public policy. The term "financial inclusion" has gained importance since the early 2000s, and is a result of findings about financial exclusion and its direct correlation to poverty. Financial inclusion is now a common ...view middle of the document...

Level of income : Level of income decides to have financial access . Low income people generally have the attitude of thinking that banks are only for rich.
'Terms and conditions : While getting loans or at the time of opening accounts banks places many conditions , so the uneducated and poor people find it very difficult to access financial services .
Complicated procedures : Due to lack of financial literacy and basic education , it is very difficult for those people who lack both to read terms and conditions and account filling forms .
Psychological and cultural barriers : Many people voluntarily excluded themselves due to psychological barriers and they think that they are excluded from accessing financial services .
Place of living : As the name suggests that commercial banks operate only in commercially profitable areas and they set up branches and main offices only in that areas .People who lived in under developed areas find it very difficult to go to areas in which banks are generally reside .
Lack of awareness : Finally , people who lack basic education do not know the importance of the financial products like Insurance , Finance , Bank Accounts , cheque facility ,etc.

Consequences Of Financial Exclusion Major Two Threats :

Losing opportunities to grow : In the absence of finance , people who are not connected with formal financial system lack opportunities to grow.
Country's growth will retard : Due to vast unutilized resources that is in the form of money in the hands of people who lack financial inclusive services.
Other Consequences :
Business loss to banks : Banks will loss business if this condition persists for ever due to lack of opening of bank accounts.
Exclusion from mainstream society : The people who lacks financial services , presumed that they are excluded from mainstream society .
All transactions cannot be made in cash : Some transactions can be made in cash . In this technological world everybody wants to have electronic cash system like debit...

Other Essays Like Financial Inclusion

Value Added Statements; Risk Assessment and Corporate Financial Management

944 words - 4 pages Value Added Statements; Risk Assessment’s Role in Corporate Financial Management This paper will show the benefits of value added statements and argue for their inclusion in U.S. financial reports. The role of risk assessment in financial management will also be discussed. Gary Meek and Sidney Gray (1988) argued that value added statements (VAS) would show profits in a format that would be easily understood and usable by all stakeholders

Unit 303 (Shc33) - Promote Equality and Inclusion in Health, Social Care or Children’s and Young People’s Settings

956 words - 4 pages Unit 303 (SHC33) - Promote Equality and Inclusion in Health, Social Care or Children’s and Young People’s Settings 1.1a Explain what is meant by – diversity The word diversity means difference or variety. Each person is unique and therefore different. The wider term diversity means understanding and respecting people’s individual differences and varieties because of their backgrounds, upbringing, culture, political opinions as well as race

Unit 503 Champion Equality, Diversity and Inclusion (Shc53)

1891 words - 8 pages case for action; new organisational structures and systems; lack of group cohesiveness; differing personalities; the media; prejudice; implications of non-compliance e.g. financial, legal, moral, health There are many barriers to diversity and inclusion. These usually include prejudice, culture and upbringing and religious beliefs. Prejudice is “a preconceived opinion that is not based on reason or personal experience” and creates barriers to

Comparative Perspective Inclusive Education Uk and Austria

4922 words - 20 pages ; however, they think the government is acting to slowly (Lebenshilfe 2009). England has not ratified article 24, legislation exists for inclusive education, however, the financial, support and training structures for children, families and teachers seems to be lacking, and these negative effects are further compounded in England by the competitiveness in education market. Whilst many children and parents want inclusion ( ALLFIE, 2009, CSIE 2009

Financial Innovation

1777 words - 8 pages have chosen from commercial , technical and telecommunications industries have been chosen to enhance financial inclusion in India. Integration of telecommunication sector in the payment bank architecture is important because of the wide distribution network they already own. Payments will function in the same way as normal banks in that they can take deposits from their customers with certain restrictions being placed on the deposit amounts

Acc561 Financial Types

1176 words - 5 pages earnings for the period, using information such as net income from the other financial statements. This statement of retained earnings can appear as a separate statement or as an inclusion on either a balance sheet or an income statement. The statement of retained earnings is also known as a statement of owner's equity, equity statement or statement of shareholders' equity. Statement of Cash Flows The statement of cash flows is the fourth

Assets That Are Not Included in the Balance Sheet

1042 words - 5 pages happen like death or a serious accident. So it might make the balance sheet unrepresentative of the organization. The users would be mystified since inclusion of workforce as an asset lack relevance and reliability measurement. Therefore, to a greater extent workforce should not be included in the balance sheet even though it is a valuable asset to the organizations. Reference: Weetman, P. (2006), 4th edition, Financial and management accounting an introduction. (Financial times, Prentice Hall)

Developing Human Capital Through Education: Challenges and Solutions

2082 words - 9 pages launched hitherto have had little impact in this sphere. The ‘Action Plan on Inclusive Education’ of the MoHRD is indeed a commendable step towards the objective of inclusion. Speculations have, however, surfaced at times about the financial viability and manpower investment practicability in the sector. Nevertheless, the success of Mali, a poor country in Africa, in providing inclusive education undermines all claims to such an impediment

Roles and Responsibilies of a Teacher

831 words - 4 pages science class needs more of practical knowledge then just lecturing, they are more likely to be pragmatist, need logical reasoning for doing something as stated by Honey and Momford (1986). Some learner’s might have some financial or personal problems during the course of study that can have a negative impact on their learning. b) Plan & Design: Planning will involve Scheme of work, prepared in advance and will include the entire syllabus

Managing Diversity at Workplace

979 words - 4 pages Objective, Management by Walking around and Open Corporate Policy. At HP, employees believe that diversity and inclusion are key drivers for creativity, innovation and invention. Throughout the world, they are putting their differences to work to connect everyone to the power of technology. Creating a diverse, inclusive environment has been an ongoing journey of continuous action for many years. By ‘Inclusion’ HP means a work environment where everyone

Understanding Dignity

2738 words - 11 pages Understand how to raise awareness of diversity, equality and inclusion Explain what is meant by • Diversity; Diversity means difference, tho many people are different in the own unique way they also have things in common with others around them .Noticing people have differences and in-powering the differences can make a person feel more valuable by the people around them personal characteristics also plays a big place in peoples differences

Related Papers

Banking Management Essay

4633 words - 19 pages Introduction The Government of India and the Reserve Bank of India have been making concerted efforts to promote financial inclusion as one of the important national objectives of the country.  Some of the major efforts made in the last five decades include - nationalization of banks, building up of robust branch network of scheduled commercial banks, co-operatives and regional rural banks, introduction of mandated priority sector lending

Financial Essay

1255 words - 6 pages Financial Inclusion to Bring Every Household in Banking Ambit Financial Inclusion is meant to extend financial services to the large hitherto un-served population of the country to unlock its growth potential. In addition, it strives towards a more inclusive growth by making financing available to the poor in particular. The Prime Minister in his Independence Day speech this year had announced that “it will be our Endeavour to ensure that all

503 Champion Equality Essay

2400 words - 10 pages talk, which is why each carer needs to be matched to each customer to help with the barriers. Inclusion barriers also include financial and the size of the care package not giving the carer and the customer enough time for them to be in the community with support. However this is not an excuse for not doing nothing and not meeting the customer’s needs the expectations is that as many modifications are to be made as possible to lift the

Explain Diversity And Equaility Essay

3744 words - 15 pages CHAMPION EQUALITY, DIVERSITY AND INCLUSION Sheena Fox Diversity literally means difference. Diversity recognises that though people have things in common with each other, they are different and unique in many ways.Diversity is about recognising and valuing those differences. These include personnel chacteristeristics such as background, culture, personality and peoples work style in addition those that are protected under discrimination