Topic: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
2.Financial inclusion is increasingly being recognized as a key driver of economic growth and poverty alleviation the world over. Discuss the efforts being made by India in this direction.(250 words)
Why this question:
The Reserve Bank of India (RBI) released the National Strategy for Financial Inclusion (NSFI) for the period 2019-2024.Thus the question aims to discuss the efforts in this direction.
Key demand of the question:
Discuss in detail the importance of Financial inclusion and in what way it can drive economic growth and help alleviate poverty. Explain what has been done in this direction by the government of India in this direction and what more is required.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Define what you understand by financial inclusion.
Discuss the aspects of the recent RBI policy in detail –
It aims to strengthen the ecosystem for various modes of digital financial services in all Tier ll to Tier VI centres to create the necessary infrastructure to move towards a less cash society by March 2022.
One of the objectives of the strategy includes increasing outreach of banking outlets of to provide banking access to every village Within a 5km radius or a hamlet of 500 households in hilly areas by March 2020.
The aim also to see that every adult had access to a financial service provider through a mobile device by March 2024.
With the aim of providing basic of financial services, a target has been set that every Milling and eligible adult, has been enrolled under the Prime Minister Jan Dhan Yojana, be enrolled under an insurance scheme and a pension scheme.
The plan is also to make the Public Credit Registry (PCR) fully operational by March 2022 so that authorized financial entities could leverage the same for assessing credit proposals from all citizens.
Discuss other aspects too and conclude with significance.
Conclude with way forward.