What is in news : To make the post-pandemic recovery more inclusive and sustainable, financial inclusion would continue to be a policy priority , RBI Governor said at The Economic Times Financial Inclusion Summit.
What : Process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost
What has government done:
- Jan Dhan-Aadhar-Mobile (JAM) Trinity : The government intends to use these three modes of identification to implement one of the biggest reforms in independent India – direct subsidy transfers to the poor.
- Schemes to promote financial inclusion and provide financial security to empower the poor and unbanked in the country. These include the Pradhan Mantri Mudra Yojana, Stand-Up India Scheme, Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, and Atal Pension Yojana.
- Reserve Bank of India (RBI) and National Bank for Agriculture and Rural Development (NABARD) have taken initiatives to promote financial inclusion in rural areas.These include the opening of bank branches in remote areas.
- Issuing Kisan Credit Cards (KCC)
- Linkage of self-help groups (SHGs) with banks.
- Increasing the number of automated teller machines (ATMs)
- Business correspondents model of Banking, etc.
- Promotion of Digital Payments
- With the strengthening of the Unified Payment Interface (UPI) by NPCI, digital payments have been made secure, compared to the past.(BHIM UPI)
- Enhancing Financial Literacy: The Reserve Bank of India has undertaken a project titled “Project Financial Literacy”.
- Pocket Money is Securities and Exchange Board of India (SEBI) and National Institute of Securities Markets (NISM’s) flagship programme aimed at increasing financial literacy among school students.