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PRESENTED BY:

Wendell Miranda PG12007Sumit Dev PG12036

Hiba sayed PG12055

Rahul Chawla PG12076

Pooja Malde PG12096

Nikon BhattPG12110

Rohan Patel PG12097

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Financial Exclusion

Signifies the lack of access

by certain segments of thesociety to appropriate, low-cost, fair and safe financialproducts and services frommainstream providers.

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Financial Inclusion

Process of ensuring access to financialservices and timely and adequatecredit where needed by vulnerablegroups such as weaker sections and low

income groups at an affordable cost.-Committee Report on Financial Inclusion in India

(Chairman: C Rangarajan)

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Need for Financial Inclusion

Providing formal credit avenues

Plug gaps in public subsidies and welfare

programmes

Creating a platform for inculcating thehabit to save money

To create financial soundness & literacy

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Objectives Of Financial Inclusion

Deliveryof

Bankingservices

Savings+OD a/c

EBT forRemitta-

nces

PuresavingsProduct(RDS)

EntrepreneurialCredit

Banking to 6,00,000Villages

Delivery Model : Costcentric Revenue

Generational

Quality Bankingservices@ doorstep

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Highlights :Initiatives by RBI

Expansion Of Banking Infrastructure

2001 2011

Rural 30.1 54.4

Urban 49.5 67.8

0

10

20

30

40

50

60

70

80

AxisTitle

% of Households Availing Banking

Services

Opening No frills accounts

Relaxation Of KYC norms

Engaging Business

Correspondents

Setting up of USBs

Simplified Branch

authorization

Adoption of EBT- leveraging

ICT

GCC Hassle Free credit

Each Household to have at least one bankaccount

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Benefits of Financial

InclusionIncreasing the demand for credit.

Remittance of money.

Basic Saving Bank Account.

Immediate credit.

Entrepreneurial credit.

Less Documentation.

Direct cash transfer

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Issues & Challenges

Infrastructural Limitations

The Viability Gap

Recovery

Miniscule part of the portfolio

No Frills Account

Electronic Benefit Transfer

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Issues & Challenges

Infrequent Service

Attrition rate Intentional delay to earn interest

Outsourcing

The Banking Correspondent Model

No proper functioning of utilities

Limited number of service centres

Availability of trained manpower

ICT related Problems

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Issues & ChallengesInternet Fraud Security measures

Card Not Present transaction

Second Factor Authentication

Card Present transaction

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SWABHIMAAN

Initiative by Government of India and Indian BankingAssociation

Launched in Feb 2011 by Pranab Mukherjee in his BudgetSpeech 2012-13

Aim of Swabhimaan is to provide banking services to 74000unbanked villages with population of 2000 or more

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SWABHIMAAN

Special Provisions for North-Eastern Hilly Regions

Services provided by banks under Swabhimaan Campaign

Goal to provide branchless banking through technology

Banks to provide basic services like deposits, withdrawals,remittances using Bank Saathi

Enables Government to transfer subsidies and social securitybenefits

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SWABHIMAAN

Micro-insurance and Micro-pension to reachthe masses using this banking infrastructure

Banking facilities include savings bank,Recurring Deposits, FDs , Overdraftfacilities, Kisan Credit Card(KCC), GCC andcollection of cheques

Aim to promote financial literacy in India

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SWABHIMAAN

Swabhimaan programme to beclosely monitored by State-LevelBankers Committee Mechanism

District Magistrates / Collectors toassists in monitoring process

Farmers to get access to easy creditand thereby avoid exploitations frominformal moneylenders

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Update on Financial

Inclusion Swabhimaan Financial Inclusion has been expanding

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Current status- Swabhimaan

Roll out of Direct Benefit Transfer

Setting up of Small Ultra branches

Extension of Swabhimaan

Scheme to North Eastern Regions

Kisan Credit Card Scheme

RBI launched multilingual website

in 13 languages

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Current status- Swabhimaan

Various Sub Schemes under the

Swabhimaan Campaign by Public

Sector Banks

Use of Handheld Devices

and Biometric Cards

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Banking Penetration has

increased

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Cost of Financial Inclusion

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Recommendations

Partnership with dedicated NGOsand Microfinance Institutions (MFIs)

Mobile banking

Lending by banks directly toSHGs

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Recommendations .

Financial literacy programme

Financial inclusion as a part ofCourse Curriculum

Establishment of FinancialCounseling Centers

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Recommendations

Mobile banking vans

Importance to role of post office

Effective use of informationtechnology solutions

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Recommendations

Procedural/ Documentation changes

Encourage more companies like FINO

Creation of one multilateral agency

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