Authors

1. Prof. Jay J Talati
2. Prof. Riddhi Sanghv
3. Dr. H N Misra

Affiliation

• Principal, Noble Commerce College, Junagadh
• PhD Student, RK University, Rajkot and Assistant Professor, Noble Group of Institutions
• Director, The Mandvi Education Society Institute of Management & Computer Studies

Abstract

Government of India has set an objective to include the excluded in the ambit of formal financial
sector. For this, it has undertaken many of the policy proposals. The basic rationale behind
undertaking these policy proposals was to safeguard the vulnerable groups from the vicious circle of
informal credit, unbearable interest burden, financial frauds and exploitation. Initially Reserve Bank
of India launched the concept of no frills accounts, and had relaxed KYC norms also. RBI also
introduced Micro Finance, General Credit Cards, and Kisan Credit Cards. The concept of Self Help
Groups was also introduced with the same vision. Thus, banking sector has played an important role
to implement, promote and monitor the key objectives of the financial inclusion drive. And it has also
helped, guided and encouraged the untapped group of households in formal financial sector. This
paper aims to analyze the major factors affecting the implementation of Financial Inclusion initiatives
by the Government & Reserve Bank of India. For this, the researcher has taken the opinions of the
banking officials. They are the key people who play an important role in including the target group in
the formal financial sector. They provide the first step of inclusion, the basic of banking services which
is starting from opening a bank account. Then they give formal credit; provide access to services like
ATM etc. This study is undertaken by studying the view points of banking officials. For this, a sample
of 110 respondents is taken to analyze the major factors affecting the Financial Inclusion drive.

Keywords

Bank Accounts, Demand - Side Analysis, Financial Inclusion,, Formal Credit

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