Financial inclusion means bringing every person into the formal banking system. It ensures all people can access basic banking services like savings accounts, loans, insurance, and payment services at affordable rates. The Reserve Bank of India defines it as 'access to financial services and timely credit where needed by vulnerable groups at affordable cost.'
Key Components of Financial Inclusion:
1.
Banking services reach all people
2. Products are affordable
3. Services are accessible and convenient
4.
Focus on vulnerable groups like rural population, women, minorities
Pradhan Mantri Jan Dhan Yojana (PMJDY) - Launched August 28, 2014:
This is India's biggest financial inclusion scheme. Key features include zero balance savings accounts, RuPay debit cards, accident insurance of Rs. 2 lakh, and life insurance of Rs. 30,000. The scheme also provides overdraft facility up to Rs. 10,000 after 6 months of account opening.
Pradhan Mantri Mudra Yojana (PMMY):
Provides loans up to Rs. 10 lakh to micro enterprises.
Three categories exist:
- Shishu: Up to Rs. 50,000
- Kishore: Rs. 50,001 to Rs. 5 lakh
- Tarun: Rs. 5,00,001 to Rs. 10 lakh