Financial inclusion is finance term. This term is used in banking sector. If any bank provides his banking services at very low cost to the poor people of any country. Then these financial services are called financial inclusion. This finance term is becoming so popular because every bank is doing some activities of financial inclusion.
We can include following banking services as financial inclusion:-
- Provide the facility to open free saving account to rural customers.
- Provide loan at very low rate to poor rural peoples of India.
Financial inclusion term is also used in govt. social work. Providing facilities free of cost to the poor section for upgrading them . Govt. of India is doing financial inclusion activities by operating Sarva Shiksha Abhiyan, Rural Employment Guarantee Scheme.
Objectives of Financial inclusion
According to UN the main objectives of financial inclusion are as follows:
Financial products like saving, short and long term credit, leasing and factoring, mortgages, insurance, pensions should provide to poor people at lower cost.