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|Title:A systematic review of financial inclusion strategies and practices|
Dr. Tapas Poornima, Dr. Pillai Deepa, Dr. Dangre Rita
Financial inclusion has been a key enabler in achieving sustainable development at a macro level. Inclusive financial system promotes policy objective of financial stability, economic growth and developmental goals of the nation. The micro and macro benefits of financial inclusion are immense. However, there coexist certain limitations. In India, barriers to financial inclusion can be categorized as income insecurity, socio economic condition, financial illiteracy and technological infrastructure. Financially excluded sections largely comprise of marginal farmers, urban slum dwellers, migrants, women, self-employed and senior citizens. One of the foremost challenges faced by banks is the inclusion of this financially excluded segment in the formal financial sector. Present study is carried out with following objectives. (1) To analyze the similarity and dissimilarity that exists in the financial inclusion initiatives across emerging nations. (2) To examine the interdependence of financial inclusion and financial stability of the economy. (3) To assess the payoffs of the financial inclusion interventions. For this paper, a systematic review of financial inclusion strategies and practices is made. It comprises of two sections: Section I summarizes on the pragmatic and institutional studies and the paybacks of financial inclusion at a macro level. Section II outlines the uneven distribution of the concerns underlying the financial inclusion initiatives. Barriers to financial inclusion can be categorized as income insecurity, socio economic condition, financial illiteracy and technological infrastructure. Section III gives the summary of the characteristics of Studies based on challenges of Financial Inclusion and the strategic payoffs. The next wave of inclusion should be to financially educate and prompt beneficiaries to use their access to financial services for improving their economic and social well-being.