Aiswaria P. J., The National University of Advanced Legal Studies
ABSTRACT
Financial inclusion plays a crucial role in promoting inclusive economic growth and reducing poverty by providing marginalized communities with access to formal financial services. This research paper investigates the concept of financial inclusion and its importance in empowering marginalised groups. It explores the underlying factors causing financial exclusion and emphasizes the urgent need to extend financial services to marginalized communities in India. The paper delves into various financial inclusion schemes and policies implemented by the Indian government, such as the Pradhan Mantri Jan-Dhan Yojana (PMJDY) and the National Rural Livelihood Mission (NRLM). While these initiatives have shown progress in increasing account penetration, challenges persist in achieving meaningful and sustained financial inclusion. The paper evaluates the effectiveness of existing policies, highlighting the underutilization of accounts and limited access to credit and insurance products among marginalized communities. To enhance financial inclusion, the paper recommends a multi-pronged approach. This includes raising awareness about financial services, expanding the presence of formal financial institutions in remote areas, and designing inclusive products tailored to the needs of marginalized communities.
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