10 Successful Financial Inclusion Schemes in India

Financial Inclusion India

Financial inclusion refers to the ability of individuals and businesses, particularly those from disadvantaged or marginalized communities, to access and use a range of appropriate and affordable financial services.

Importance of Financial Inclusion in India

In India, financial inclusion is important for several reasons:

  1. Reducing poverty: Financial inclusion can help to reduce poverty by providing individuals and small businesses with access to credit and other financial services, which can help them to improve their income and living standards.
  2. Promoting economic growth: Financial inclusion can promote economic growth by increasing the number of individuals and businesses that are able to access credit and invest in their businesses and communities.
  3. Combating corruption: Financial inclusion can help to combat corruption by reducing the use of cash in the economy, which can make it more difficult to hide and launder money.
  4. Empowering women: Financial inclusion can empower women by increasing their access to credit and other financial services, which can help them to improve their income and living standards.
  5. Improving financial literacy: Financial inclusion can improve financial literacy by providing individuals and businesses with access to financial education and training, which can help them to make better financial decisions.

The Reserve Bank of India (RBI) has taken several steps to promote financial inclusion in India, such as launching the Pradhan Mantri Jan-Dhan Yojana (PMJDY) scheme, launching the UPI platform and proposing the creation of a digital rupee.

Check out: Differences between UPI and Digital Rupee

However, there are still several challenges to be addressed such as low banking penetration in rural areas, lack of financial literacy, lack of trust on digital transactions and lack of infrastructure in certain areas.

10 Most Well Known Schemes under Financial Inclusion Initiatives

There are several initiatives and schemes in India aimed at promoting financial inclusion:

  1. Pradhan Mantri Jan-Dhan Yojana (PMJDY): This scheme was launched in 2014 by the Government of India to provide access to banking services and financial inclusion for all households in the country.
  2. Micro Units Development and Refinance Agency Ltd. (MUDRA): This scheme was launched in 2015 by the Government of India to provide financing to micro and small enterprises.
  3. National Social Assistance Programme (NSAP): This scheme was launched in 1995 by the Government of India to provide social assistance to vulnerable groups such as widows, the aged, and persons with disabilities.
  4. Pradhan Mantri Fasal Bima Yojana (PMFBY): This scheme was launched in 2016 by the Government of India to provide crop insurance to farmers.
  5. Pradhan Mantri Suraksha Bima Yojana (PMSBY): This scheme was launched in 2015 by the Government of India to provide accident insurance to individuals.
  6. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): This scheme was launched in 2015 by the Government of India to provide life insurance to individuals.
  7. Sukanya Samriddhi Yojana: This scheme was launched in 2015 by the Government of India to provide a savings account for the girl child.
  8. Atal Pension Yojana (APY): This scheme was launched in 2015 by the Government of India to provide a pension scheme for individuals.
  9. Pradhan Mantri Mudra Yojana (PMMY): This scheme was launched in 2015 by the Government of India to provide credit to micro and small enterprises.
  10. Pradhan Mantri Awas Yojana (PMAY): This scheme was launched in 2015 by the Government of India to provide affordable housing to the underprivileged and low-income groups.

These are some of the main financial inclusion initiatives in India, many of them aim to increase access to credit, banking services, and other financial services, particularly for disadvantaged and marginalized communities.


Nikesh-Mehta-AllOnMoney

Hi, I am Nikesh Mehta, owner and writer of this site. I’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business. I can be reached at [email protected].

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.