Union Finance Minister Pranab Mukherjee said on Saturday that one of the challenges in the financial sector that India faces today is the limited reach of financial services among the poor and vulnerable sections of the society.
“Financial inclusion is a key determinant of sustainable and inclusive growth, which in turn is essential for building an equitable society. Financial inclusion is important as it provides an avenue to the poor to bring their savings into the organised financial system. It gives them an avenue to remit money to their families in villages, besides weaning them away from the clutches of the exploitative money lenders. It is essential to extend banking services to the rural hinterland at the earliest, so as to integrate those regions with the growing India,” said Mr. Mukherjee while launching social banking initiatives of Union Bank of India here.
The Government has asked banks to provide banking facilities to habitations having a population of over 2,000 by March 2012. Banks have identified about 73,000 such habitations for providing banking facilities using appropriate technologies. A multi-media campaign, “Swabhimaan”, has been launched to inform, educate and motivate people to open bank accounts. During 2010-11, banks have covered about 29,000 villages. The remaining villages are to be covered during 2011-12.
Many a time lack of communication, awareness and language barriers creates a demand and supply gap for the financial services. This has to be addressed.
