Financial Inclusion and Role of Microfinance

Financial Inclusion (FI) is enabling access to/delivery of banking services at an affordable cost to the vast sections of disadvantaged and low-income groups. Unrestrained access to public goods and services is the sine qua non of public policy of a nation. Microfinance programmes are intended to reach poor segments of society as they lack access to financial services. It, therefore, holds greater promise to further the agenda of financial inclusion as it seeks to reach out to the excluded category of population from the banking system. INAFI INDIA as a network of development NGOs is committed to the financial inclusion. Its member NGOs are involved in promoting financial inclusion through their large micro finance programme of SHG bank linkage. Financial inclusion is not just credit dispensation, its about connecting the people with the banking system for availing bouquet of financial services including access to payment system. Technology holds the key to further the process of financial inclusion, more so in the remote and far flung areas. It enhances access to financial services in a cost effective manner and over time with the increasing volume lead to more affordability.