Digital Financial Inclusion – A Theoretical Overview

Finance has become an important part of an economy for development of the society as well as economy of nation. Through Financial inclusion we can achieve equitable and inclusive growth of the nation. Financial inclusion stands for delivery of appropriate financial services at an affordable cost, on timely basis to weak groups such as low income groups and weaker section who lack access to even the most basic banking services. In this project, the researcher attempts to understand financial inclusion and its importance for overall development of society and Nation‟s economy. Studies on financial inclusion have helped to understand the livelihoods of people especially the poor and how they interact with financial services, financial inclusion has been generally acknowledged as imperative in reducing poverty and achieving inclusive economic growth. Financial is not an end itself, but a means ultimately it is conduit to improved livelihoods, particularly the poor and very poor groups of society. Of India, shriNarendraModi announced the PradhanMantrivJanDhanYojan on August 15, 2014. PMJDY is a National Mission on Financial inclusion encompassing an integrated approach to bring about comprehensive financial inclusion of all the households in the country. The plan envisages universal access to banking facilities with at least one basic banking account for every household, financial literacy, access to credit, insurance and pension facility. In addition, the beneficiaries would get rupaydebit card having inbuilt accident insurance cover of Rs. 1 lakh (department of financial services, ministry of finance,n.d.a)