The Global Findex Report: Financial Inclusion in India

3. Financial Inclusion

Definition

According to Reserve Bank of India(RBI), “Financial Inclusion is the process of ensuring access to appropriate financial products and services needed by all sections of the society in general and vulnerable groups such as weaker sections and low income groups in particular at an affordable cost in a fair and transparent manner by mainstream institutional players”.

According to the Committee on Financial inclusion headed by Dr. C. Rangarajan defined financial inclusion as “The process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost”.

Thus, Financial inclusion does not mean delivery of financial services for all at all cost, but delivery of financial services and products at affordable costs.