Authors
Garima Jindal, Mohini
Abstract
India has become the world 6th country which has the largest economy on the basis of GDP data, which is approximately 7.2% in January, 2018. Still, in India, a large population live in the rural areas and have low income which is not even sufficient to survive. To overcome with this problem, the Government of India (GOI) launched a programme of financial inclusion. It plays a very vital role in developing the economic growth of the country by reducing the poverty from the country. The main aim of financial inclusion is to provide the financial services to all common people in fair, transparent and equitable manner at reasonable cost. Still many people are there, who are unable to avail the benefits of financial inclusion due to lack of awareness, lack of financial literacy and many other factors. In this paper, a review study has been done on development of economy growth of the country and poverty reduction using financial inclusion programme. Keywords: Financial Inclusion, Financial Services, Economy
Introduction
In India, around 50% population are below the poverty line because of the high population growth, due to which the achievement of sustainable development is difficult. To overcome from this problem, Government of India (GIO) launched different programs such as Sukanya Samriddhi Yojna, Financial Inclusion Program, Rashtriya Swasthya Bima Yojana etc. But it is necessary to involve the large number of people from all sections of the society. In these programs, financial inclusion is one of the important program through which poor, disadvantaged and underprivileged group can access to the financial services.
According to the Planning Commission (2009), ‘Financial inclusion refers to universal access to a wide range of financial services at a reasonable cost. These include not only banking products but also other financial services such as insurance and equity products’ (Singh et al., 2014).
From many years, Financial Inclusion Programs are continuously attracting the global attention in the development of financial growth because of its ability to drive the growth and sustainability of an economy. It is observed that many people are excluded from the financial service due to which there is a loss of deposits or savings, loss of investible funds and related loss of capacity of the global economy to generate wealth (Adetiloye, Erin and Modebe, 2017).
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| APA Style | Jindal, G., & M. (2019). Role of Financial Inclusion in the Development of Economic Growth: A Review. Academic Journal of Accounting and Finance, 1(1), 14-18. |
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