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Abstract

Financial inclusion means easy of accessibility and availability of the financial services to all in the society or economy (Dai-Won Kim, 2018) (Antonia Grohmann, Does Financial Literacy Improve Financial inclusion? Cross Country Evidence, 2017). In simple words, the financial inclusion is a process of bringing socio economically weaker sections mainly financially excluded poor into the formal financial fold. The financial inclusion has the positive impact on the growth of any economy (Kim, 2017), hence it should be one of the main objectives of all developing economies in their financial policies. Further the improved financial inclusion is decreasing rural poverty (Burgess, 2005), the poor get empowered financially (Thorat U. , 2007), increasing employment (Bruhn, 2014) expenditure and savings (Brune, 2016). Furthermore it is has a direct relationship with societal development and financially empowered citizens can make necessary choices in their lives and livelihoods as they tend to aware about financial options and services available in the market, hence a country can achieve socio-political stability when poor get empowered financially (Thorat U. , 2007). For bringing and improved financial inclusion in an economy the financial literacy should be disseminated (Ajaya Kumar Nanda, 2016). The Financial literacy is the basic necessary components to access financial services (Antonia Grohmann, 2017) from formal financial sources. Once poor are able to access financial services, they become part of financial system. Thus, financial inclusion becomes reality. Empowerment is a process and it takes time to empower poor in social, economic and financial areas. Among these three, financial empowerment can be achieved by imparting necessary knowledge about financial products and services to make them access to the same (Antonia Grohmann, 2017). The poor economically empowered when they are financially literate, since lack of financial literacy leads them mismanagement of money and it turns to utter age of poverty universally (Ajaya Kumar Nanda, 2016).

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