Financial Inclusion: Problems of Migrant Labourers

Financial Inclusion is providing an easy access to banking and financial services with the help of financial institutions to the weaker sections and low income groups of the society. Financial services includes credit, insurance, saving, pension. Many measures are taken by the Reserve Bank of India and Government of India for financial inclusion. These all efforts and schemes have brought a significant increase in the use of formal banking system but it did not bring satisfactory results yet. The penetration of financial services in the rural areas of India is still very low. Both supply and demand factors can be responsible for this condition. Lack of supply, less number of bank branches, lack of suitable products meeting the needs of the poor people is the major reason for low penetration of financial services and the reasons for low demand for financial services is low income level, lack of financial literacy, complex processes and language barriers etc.