Initiation of Financial Inclusion in Rajasthan: Implication of the Pilot Project Launched in Rajsamand District of Rajasthan (India)

Abstract

A vast part of the population in India is standing on the margins of the financial system of India. These 'under-banked' people have attracted great concern from the policymakers in India. Financial inclusion (FI) is an important key factor in the economic development of a nation and the development of society by reducing the gap between the haves and the have-nots, by channelling the money flow into the economic system. It gives people easy access to the financial stream, which they would otherwise not have access to. This research article establishes the importance of financial inclusion for a country like India where various stakeholders are likely to play a crucial role in the development of the whole initiative. FI improves the economy. To develop self-reliance in the economy, the State should create a congenial atmosphere for individuals, households, and institutions to avail banking-related services easily. The banking system as a whole plays a crucial role in economic growth, and a robust financial service system is the foundation for spectacular growth and all-around development. India needs to focus on financial inclusion in order to stand out on the global platform. FI needs to go a long way to reach the core poor. Despite several drives of FI initiated by various Governments, Banks, and other Institutions, nearly 30 percent of the active population of India is still excluded from the formal channel of financial services. Merely opening no-frill bank accounts Jan-Dhan accounts will not serve the purpose. Formal financial institutions should be able to create trust and connect with those below the poverty line and who are on the borderline of poverty by developing strong bonds and linkages with system-based financial organs. Financial Inclusion is yet to deliver the warranted outcomes in India and much is to be done here, but it is undoubtedly playing an important role and yielding desired results.