Financial Inclusion and IT Contribution

Economic Inclusion and How Technology can Contribute to it?

“India is failing, it is rural poor with 230 million people being undernourished, the highest for almost any country in the world. Weakness makes up about practically 50% of child deaths in India as every third adult (aged 15-49 years) is reported to be slender (BMI lower than 18. 5). Brought out by the United Nations World Meals Program (WFP), the statement points to some shocking figures. More than 27% of the world’s undernourished population comes from India while 43% of kids (under 5 years) in the area are underweight. The figure is among the highest in the world and it is much higher than the global average of 25% and also higher than sub-Saharan Africa’s physique of 28%. These concentrating on errors arise due to imperfect information, inexact dimension of household characteristics, file corruption error and inefficiency in providing funds to impoverished sector” financial technology influencers traits

This news in TOI (dated 15. 10. 2009) reflects the Financial Exemption and its impact people are facing in India.
Allow us to first understand what Financial Inclusion means to us: 
As explained by RBI, Financial Inclusion is an abbreviation for for “The process of ensuring access to appropriate financial products and services needed by vulnerable teams such as weaker areas and low income groupings at an affordable cost in a fair and transparent manner by popular Institutional players”

The need of the hour to push Financial Inclusion made in spite of the fact that the consumer banking industry has shown huge growth in volume and complexity during the previous few decades. Despite making significant improvements out of all areas relating to financial viability, profitability and competitiveness, there are concerns that banks have not been able to include vast segment of the population, particularly the underprivileged sections of the contemporary society, into the fold of basic banking services. Nearly 60% of our inhabitants resides in rural area in India.

The opportunity of Financial Inclusion consists of providing

Bank accounts – check in account
Instant Credit
Savings products
Remittances & Payment services
Insurance – Health care
Home loan
Financial advisory services
Gumptiouspioneering, up-and-coming credit

Following sectors generally describe the Financial Different region:

Agricultural and Professional Employees
People engaged in un-organized industries
Unemployed
Females
Children
Old people
Literally challenged people.

The implications of this vary with regards to the nature and extent of services denied. It may lead to increased travel requirements, higher incidence of crime, general decline in investment, difficulties in attaining use of credit or getting credit from informal resources at exorbitant rates, and increased unemployment, etc. The small business may undergo due to lack of gain access to to middle class and higher-income consumers, higher cash handling costs, delays in remittances of money. In respect to certain researches, financial exclusion can lead to social exclusion.

From your data provided by Financial Introduction committee (set by RBI), a conclusion is available which says the work used by govt. has been quite palpable. Although in spite of these we failed in providing financial facilities to Underprivileged section in rural and metropolitan areas.