Financial Inclusiveness - The Literacy Perspective

Salim A Shamsher

Abstract


Financial Inclusion essentially refers to providing basic banking services to poor sections of the society and disadvantaged people. Research has proved that there is a clear cut and critical linkage between financial inclusion and development of the economy. This issue is of paramount importance for developing economies and can and has proved to be one of the significant measures aimed at ensuring the development of the economy. In fact as banking is one of the major public services and is an important ingredient of public policy, providing all pervasive and uninhibited access to the same to all sections of the society is of critical importance, financial inclusion and micro financing are important steps in this direction.

Banks need to be taken to the poor people rather than they approaching the banks, a financial inclusion process has to ensure this. Not only banking but insurance penetration also has to enhanced so that the benefits of the same can percolate to the lowest sections of the society. Financial literacy and use of technology can be useful tools aimed at achieving this objective.

This paper is intended to provide an overview of various aspects relating to financial inclusion, the significant macroeconomic role it plays in societal development and then proceeds to examine how literacy and skill development plays an important role in bringing about inclusive and sustainable development.

Keywords: Financial inclusion, economic development, Micro-Finance, Public policy, Literacy & Skill Development


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