Author(s): Rachana Kaushal

Abstract: Financial Inclusion (FI) has emerged as a cornerstone of Indias socio-economic development agenda to provide access to affordable financial services to all sections of group, particularly marginalized communities. This paper examines the meaning and necessity of financial inclusion, tracing its historical evolution from bank nationalization to the digital revolution under initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY). It focuses on sector-specific dimensions such as the inclusion of farmers through the Kisan Credit Card (KCC), Priority Sector Lending (PSL), and Pradhan Mantri Fasal Bima Yojana (PMFBY), as well as the financial access of organized and unorganized laborers. The study further reviews models of financial inclusion in India, including the bank-led model, self-help group (SHG)-bank linkage, and digital frameworks. Challenges such as the digital divide, financial illiteracy, and low insurance penetration are critically examined. The paper argues that while progress has been remarkable, sectoral and regional disparities persist, requiring innovative policies and sustained financial literacy efforts. Concluding with recommendations, the study underscores financial inclusion as not just a policy priority but a necessity for achieving equitable and sustainable growth in India.

DOI: https://doi.org/10.22271/27891607.2025.v5.i1b.345

Pages: 108-115 | Views: 524 | Downloads: 265

Download Full Article: Click Here