Ever are controlled by banks by changing their dependency

Ever since 1991 banking reforms , the Indian banking
industry has made a creditable evolution in terms of deposits , loans, branch
network and variety of financial services . Regardless of remarkable progress,
the mission of ensuring access to financial services by weaker section and low
income groups was left unattended. The major issues are the lack of awareness,
availability, accessibility  and usage of
banking services. They have impact on the economic health of the people as well
as of the country. 

Financial inclusion is to offer financial services
at cheaper cost to those individuals which are unable to afford it and develop
financial instruments so that it is easily accessible by less educated
individuals. Large sections of individuals are able to include themselves
financially due to this process.

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Financial inclusion is centre goal of every nation
in the world as a nation cannot run and grow without formal savings. In a
nation, if most of the people save money but they save informally or store
their saving in their own domicile then that type of savings is not useful for
that nation. That’s why financial inclusion has a significant role in the
growth and development of the nation. Unlike informal saving, formal saving is
a saving in which people save money in their bank account so that their money
is in position to aid the nation through various aspects like capital
formation.

The significance of financial inclusion is that it
leads to equitable growth and decline in inequality in regard of income and
savings, mobilisation of savings , sustainable livelihood and for political
objective like efficient path is provided for government schemes. It also makes
easier to transfer money into the bank account of deprived people under social
security schemes. Liquidity risk and asset liquidity mismatches are controlled
by banks by changing  their dependency
from bulk deposits to a large number of lower deposits.

Number of initiatives has been carried out both by
reserve bank of India and the government to include the financially excluded
people in the formal banking sector. Reforms carried out by reserve bank of
India are innovation in banking schemes, no frill accounts, relaxation in KYC
guidelines, opening of branches in rural localities, kisan credit cards. Some
of the government schemes are Jan Dhan Yojana Scheme, Sukanya Samriddhi Yojana,
Pradhan Mantra Jeevan Jyoti Bima Yojana, Rashtriya Swasthya Bima Yojana ,
Pradhan Mantra Mudra Yojana.

The main idea of the
present research is to examine the banking habits of people which can direct a
path for the success of the weaker section in improving standard of living at
micro level and further helps the nation to have a equal regional growth. In this
scenario, the present study attempts to examine the level of awareness,
availability, accessibility and usage of banking services. It also studies how
banking services has made them economically empower. 

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