Suresh Babu, K (2025) MICRO FINANCE A FINANCIAL INCLUSION – INSIGHTS INTO INDIAN CONDITION. In: Reshaping Finance: Fintech’s Role in Corporate Sustainability.

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Abstract

Building financially inclusive system is, therefore, an integral and core pillar
of financial sector reforms. India has made steady progress towards financial inclusion.
However, large numbers of the population are still excluded from the formal banking
system. Furthermore, the financially included people may not get all or right kind of the
products which they require. While there is no “one-size-fits-all” financial inclusion
strategy or approach, it is important to recognize few core or necessary and sufficient
conditions that are needed to maximize the benefits derived from such a strategy. In a
nutshell, evidence suggests that poverty reduction strategies are successful in countries
which adopt inclusive policies. In the Indian context, Reserve Bank has always sought to
balance the risk of partnerships and product innovations with the ability to achieve greater
penetration in a safe, secured and prudentially sound manner. Financial Services for the
poor people like primarily credit, Insurance services, and Small savings are termed as
Microfinance. This Microfinance can help in put resources and power into the hands of
low-income peoples, but they cannot solve all the problems caused by poverty. The
underlying belief is that only sound and strong institutions can promote financial
inclusion in a sustainable manner and, towards this end, prudent regulations have to be
in place to achieve inclusion while protecting financial stability and consumer interest.
The institutional vehicles help to improve the efficiency and productivity of all credit
institution. Microfinance institutions are taking various efforts to economic development.
They mainly contribute to solve the problem in inadequate housing and urban services as
part of rural development. The main challenge is to find the credit level which matches
their requirements. If the solution for the multipurpose credit has identified there will be
the success of rural development by alleviating poverty. This paper offers insights about
importance of financial inclusion, causes of financial exclusion; its implications and
adoption of remedial strategic initiatives to ensure basic banking facilities to the
underprivileged Indians.
Keywords---Bank-led Model

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: Bank-led Model, Business Correspondence, Financial Inclusion Index, SHGs, Financial Exclusion, Sustainable Growth; Economic Development.
Divisions: PSG College of Arts and Science > Department of Commerce
Depositing User: Dr. B Sivakumar
Date Deposited: 17 Mar 2026 09:34
Last Modified: 17 Mar 2026 09:34
URI: https://ir.psgcas.ac.in/id/eprint/2722

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