Friday, 15 November 2019

Beckoning the poor

Updated: June 2, 2016 3:06 pm

Ever since India’s independence in 1947, the biggest priority for the nation has been its economic growth, education for all and financial inclusion for the vast population of the country. While India has made some noteworthy progress in the past six decades and more, but on the aspect of financial inclusion, progress has not been satisfactory. In a country where the vast majority of the population is still very poor, financial inclusion is of great significance to them. For the poor, access to finance and ensuring the optimum utilization of the resources they possess is a major challenge. Economic and societal uncertainties mean volatility in their income can have an adverse reaction on the financial stability. This exposes the poor to the dodgy moneylenders, which is turn can lead to debilitating debt trap. Financial inclusion enhances the economy. In the quest of economic power and self reliance, it is imperative for any regime to create congenial conditions for individuals, households and private institutions which includes the availability of Banking services.. The availability of banking facilities and strong bank branch network are the major facilitator’s of developmental and expansionary activities. A strong and sturdy financial system is a pillar of economic growth, development and progress of an economy. A financial system, which is inherently strong, functionally diverse and displays efficiency and flexibility, is most important for creating a market-driven, productive and competitive economy.  A mature system supports higher levels of investment and promotes growth in the economy with its coverage. The economic agents facilitate in growth and one of the important facilitator is Financial Inclusion. Financial inclusion is defined as delivery of financial services to the poor at affordable cost.

financial inclusion growth and governance

Deepali Pant Joshi

GYAN

Price : `750

Pages : 266

Dr Deepali Pant Joshi, who is an Executive Director at Reserve Bank of India, and also an expert on development economics, is a right person to understand the complete microcosm of financial inclusion. In her book, which is a collection of her speeches and writings, Financial Inclusion: Growth and Governance highlights the importance of Financial inclusion growth and governance, inalienably linked to each other and integral to financial stability. This book explores the many facets of the multiplier effect on economic growth which the possession of a bank account and of being linked to mainstream financial institutions can have on the weak and vulnerable sections of the society. It shows how this will help the poor, the weak, the vulnerable and underserved, build financial capability by accessing saving, credit, remittance, insurance, and transaction facilities at reasonable costs from the financial system, leading to sustainable, scalable, income generation allowing them to work their way out of poverty. The book explores the moral and economic arguments for financial inclusion which are both equally compelling.

The book showcases the macro policies which have driven financial inclusion and brings out the importance of the Prime Ministers Jan Dhan Yojna as an effective delivery model. The book also explains how financial intermediation for the masses will help unleash the forces of economic growth. In a nutshell, this book is an important source oof reference for economists and policy makers.

By Nilabh Krishna

05-06-2016

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