Princy P James


Indian agriculture sector experiences vicious circle of poverty which decelerate economic growth . Financial exclusion is one of the main reason of it. In India marginals and weaker sections are excluded from main stream of the economy. To achieve sustainable development, all sections of the people need to be come into main stream. This study is an attempt to understand the concept of financial inclusion, financial inclusion in India and micro finance. RBI defines “Financial Inclusion is the process of ensuring access to appropriate financial products and services needed by all sections of the society in general and vulnerable groups such as weaker sections and low income groups in particular at an affordable cost in a fair and transparent manner by mainstream institutional players” .The present study also tries to understand how micro finance lending facilitates the acceleration of financial inclusion. Micro finance lending is a strong weapon of financial inclusion. Micro credit provided by banks emerged as a major policy tool of financial assistance in the rural credit, particularly to the poor sections of the society. Micro finance by providing small loans and savings facilities to those who have been excluded from other formal services, acting as a key strategy for reducing poverty and discrimination. Inclusive development means empowerment of weaker sections, SC/STs and women. In this context  “financial inclusion “ owns its significance.


Financial inclusion, Financial exclusion, Micro finance lending, SHG, Banking Access.

Full Text:



• Banerg, Amalesh (ed).India’s Inclusive Growth in the Age of Globalisation. New Delhi: Madavan Sachdeva,2009.Rajdhani Printers.

• BasuPriya,( 2005)Economic and Political Weekly, Vol. 40, No. 37.

• Dev S Mahendra (ed).Inclusive Growth in India:Agriculture, poverty, and Human Development.NewDelhi:Sai Graphic Design,2004.Rakmo Press.

• Mazumdar,Rabin. “The Vicious Circle of Financial exclusion: An empirical study in West Bengal”-Indian Journal of Finance,7,12(2013):38-46.

• Nabard. (2009): Status of Microfinance in India 2008-09, NABARD,

• P,J. Christabell., A ,Vimal Raj. “Financial Inclusion in Rural India: The role of Microfinance as a Tool”. IOSR Journal of Humanities and Social Scienc ,2, 5 ( 2012), 21-25.

• Panda,P.K. “Micro credit in managing poverty”. Financial Agriculture –A National Journal of Agriculture and Rural Development,39,5,(2007):11-15.

• RamachandranV, K and M Swaminathan( 2005):Financial Liberalisation and Rural Credit in India, Tulika Publications, New Delhi

• Rangarajan (2008), Report of the committee on financial inclusion, government of India

• Report of the Committee for Financial Sector Reforms, Chaired by Dr.RaghuramRajan, Planning Commission, Government of India, Financial Inclusion and Banks: Issues and Perspectives”, RBI Monthly Bulletin, November 2011

• Sathiyan,Sanjana.,Prasant Kumar Panda. “Financial Inclusion in India: An Analysis of Pattren and Determinants”. Indian Journal of Finance,10,4 ,(2016):41-52.

• Siddik,NurAlarm.,Gangsun,andSajalKabiraj. “Financial Inclusion and its determinants:A study of Bangladesh” Indian Journal of Finance, 9, 6, (2015) : 7-27.

• World Bank.2014. Global Financial Development Report: Financial Inclusion. Washington.

• www.nabard.org accessed on 1st December 2009.

• websites


  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Copyright © 2017 International Educational Applied Scientific Research Journal