Approaches to Financial Inclusion in India

♤ Product based approach: This includes products like:

o No Frills Account: Introduced in 2005, to provide access to basic baking services by financially excluded peoples. Under this approach banks open accounts with zero balance or very minimum balance requirement for the under-privileged.

o Basic Savings Bank Deposit Accounts (BSBDAs) : A better version of No Frills Account, introduced in 2012. It is for all individuals with the facility of debit card, cheque book, internet banking, overdraft limits at minimal charges.

o Kisan Credit Cards (KCC): smart cards to the farmers for providing timely and adequate credit support from single window banking system for their farming needs

o General Purpose Credit Cards: (GCC): facilitate credit up to Rs.25000/- without any collateral requirement for rural and semi urban people based on assessment of household cash flows.

o Saving account with Overdraft facility: Banks have been advised to provide overdraft (OD) facility in saving account and also Small Overdrafts in No-frills accounts.