Anandu P Anand, BBA LLB, Presidency University, Bangalore
ABSTRACT
India is a welfare state whose policies are intended to give its residents a socialistic way of life. Following independence, the nation adopted a mixed economy with participation from the public and private sectors. The progress of the nation depends heavily on financial institutions including banks, financial institutions, and cooperatives. It focuses on achieving both social and economic objectives while preventing monopolistic tendencies, power concentration, and inefficient resource usage.
Through banking reforms, the concept of social banking was established in order to guarantee banking for the underserved people, meet developmental needs, make it simple to obtain regularized credit, lower the bar for opening accounts, etc. Social banking is the process of reorienting policies to serve the general populace. Social banking can, through financial literacy initiatives, generate awareness among the poor about financial products and their utility. Banks can also contribute towards making the poor creditworthy through training and counseling programmes.
In this paper I will be analyzing what social banking is, its impact on the economical condition of India, the role of financial inclusion and I will also be discussing some suggestion to enhance the positive impact of socially inclusive banking to the economy of the country.
Social Banking can be used as a tool to eradicate poverty by bringing banking services to the rural section of the society and hence can contribute to the development to such class of the society and thereby can help in the overall development of our nation.
