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Abstract-
As banking services are in the nature of public good, it is essential that availability of banking and payment services to the entire population without discrimination should be the prime objective of the public policy. As we know after the liberalization in Indian economy banking sector is playing a pivotal role for economic development. So here the author has tried to give a bird's eye view about the concept of financial inclusion and how it will be able to bring a reform in Indian financial system through the concept of "The future lies with those companies who see the poor as their customers" C.K. Prahalad". The paper highlights the transformation in attaining the financial inclusion in a competitive atmosphere and how the rural banks cover wider service in rural part. Majority of population are still unbankable. Though overall scenario of opening bank offices is increasing from 56 percent in 2005 to 62 percent in 2009 in urban areas yet the number of rural bank offices came down from 44 percent in 2005 to 38 percent in 2009 out of the total number of bank offices in India. Also the author has demystified about the financial inclusion techniques and how it will help to serve the service in rural area. As recently the coverage of banking services reveals that number of account holders per 100 of adult population in India is 59. Remaining 41 people are still financially excluded. Out of them majority belongs to rural population. At the end the author has concluded by discussing about the support from banking regulator as well as government of India for the overall achievement of this reform for economic upliftment by which poorer also can be bankable.
Keyword: Liberalization, Public Policy, Financial Inclusion, Economic Development, Financial Inclusion Model
Introduction
Among Indian service sector banking industry has shown tremendous growth in volume and complexity in dimension during the last few decades. Despite making significant improvements in all the areas relating to financial viability, profitability and competitiveness, there are concerns that banks have not been able to include vast segment of the population, especially the underprivileged sections of the society, into the fold of banking services. In India the focus of the financial inclusion at present is...