Financial Inclusion

Question 1

What is fI?

Answer 1

Savings ,credit , insurance , financial markets and financial literacy

Question 2

How to be financially inclusive how to get there

Answer 2

Unserved category converted to served with the help of banks , micro finance comp, mobile network operators ,card comp , postal networks and financial cooperatives.

Question 3

What is needed to get financial inclusion?

Answer 3

Broader inclusion , customer centred prdt innovation, financial capability,strong customer protection,better financial infrastructure,more and interoperable access points , enabling legal and regulatory framework, public and pvt sector commitment, open and balanced playing field .

Question 4

Objectives of financial inclusion ?

Answer 4

1. Set up financial institutions for the needs of poor.
   2) Financial services at low cost.
   3) financial sustainability for the poor.
   4) financial literacy and awareness.
   5)Habit of saving growth & dev.
   6)prosperity in rural areas.

Question 5

Benefits of Financial inclusion?

Answer 5

1) rural masses will get access to banking like cash receipts , payments balance enquiry etc.
2)reduction in cash economy as more cash is bought into the banking system.
3)inculcates the habit of saving - capital formation.
4)funds actually reaching the intended recipients instead of be siphoned off
5) transparent credit from formal banking channels.

Question 6

History of financial inclusion

Nationalisation of banks

Answer 6

1969 and 1980
Aim - Push funds towards sectors in rural india

Question 7

Lead bank scheme

Answer 7

1969
Banks to concentrate on certain districts.
Psbs - discharge their social responsibilities
Objectives:
1) branch expansion in rural districts.
2) mobilization of savings.
3)identifying land for agri development.
4) development of small scale industries.
5)to recruit and train specialised banking staffs to provide awareness about the schemes .
6) to break the crunches of money lenders .

Question 8

Objectives of priority sector lendings

Answer 8

1972
1) adequate institutional credit flows into some of the vulnerable sectors of the economy.
2) equality in distribution of credit.
3)credit to People in need
4) penetration into rural areas
5) branch expansion to fulfil psl targets
6) profitability for banks expanded into rural india - pslc.