Vol. 3, Issue 3 (2017)
Financial inclusiveness in rural sector
Author(s): Venkatalaxmi P, Dr. K Ramachandra
Abstract: Low income and Poverty in rural sector remain a stubborn challenge in India for the rapid economic expansion in previous decades. Financial inclusion is often considered as an important and essential element that makes growth inclusiveness towards access of finance which enable economic growth in different modes such as investment decisions, participate in productive activities, and to face with unexpected short-term shocks. To attract these low income and poverty towards financial inclusion, the government policymakers design and implement some programs that will broaden access to financial services, leading to reduction of poverty incidence and income equality. This paper highlights the existing literature on financial inclusion by focusing on developing Indian economy. The research also looks into the impact of financial inclusion, along with other control variables, on poverty and income inequality in their financial management. Our findings suggest that the provisions for young and old-age populations, mainly in rural area e.g., No frill account, DBT, PMJDY etc, thereby contributing to poverty reduction and lower income inequality.