Page 39 - Banking Finance June 2022

ARTICLE

"BUSINESS

CORRESPONDENT

MODEL- UNDER

FINANCIAL INCLUSION",

ISSUES & STRATEGIES

FOR MAKING IT A

SUCCESS

It is an obligation from RBI also to implement FI in the
Introduction:
country either by establishing brick and mortar branches or
Financial inclusion is a process of providing access to
in any other way, but the service must reach.
appropriate banking and financial products and services to
the vulnerable groups in particular such as weaker sections,
So in this paper, an attempt made to discuss different issues
low income groups at an affordable cost. In simple terms
faced by banks while scaling up BC model and strategies for
bringing vast sections of society who were excluded from
making it a success.
availing banking services in to the folds of formal banking.
In business angle, it is tapping of untapped business
Let us discuss:
opportunities in way of creation of strong base and
foundation for good volume of low cost deposits for the bank During 2008, based on the recommendations of Rangarajan
in the long run. From peoples point of view getting a committee RBI has advised banks to establish a road map
banking facility is costly, hence if such service available at for implementation of FI, either by establishing brick and
an affordable cost and available at suitable location most mortar branch or BC/Kiosk point in villages with population
of the people will start doing banking. >2000, <2000, over a period of time.

The focus of financial inclusion is to ensure coverage of each
About the author household in the country under banking umbrella by
providing banking services such as
N V Gupta Opening Saving account
Senior Manager (Faculty Member),
Micro credit
Union Bank of India staff training center,
Visakhapatnam. RuPay card

BANKING FINANCE | JUNE | 2022 | 39