ROLE OF THE GOVERNMENT IN FINANCIAL INCLUSION: ISSUES AND CHALLENGES IN INDIA

Abstract

In the era of Development, Financial Inclusion plays a vital role in economic growth. Financial Inclusion is something in which financial institution deliver fair and safe financial product and services at affordable cost or low price to vulnerable and low income segment of the society. It is also known as Inclusive Financing. On the path of financial Inclusion, under banked habit of low income group act as an obstacle. An important role played by self-help group movement and microfinance institution in raising the level of financial inclusion. Financial Inclusion helpful in bringing the financial independence of weaker section, that indirectly gives a way to build a nation with economically and socially strong background. It is helpful in reducing the gap between rich and low income people. The main objective of this paper is to study the initiatives made by Indian Government in achieving the goal of financial inclusion and what are the issues and challenges act as a barrier in financial inclusion. This research paper is Descriptive in nature. Secondary data is used and that is collected by various sources such as newspaper, articles, research journals and magazines. Findings will show that financial inclusion act as a stepping stone in the economic development and Indian Government also done banking revolution but it cannot give much more impact on progress of financial inclusion as it is expected from it. The objectives of financial inclusion cannot be achieved at their fullest point, reason behind this is that there some challenges face by Government such as lack of awareness about the financial product and services among the people.