Challenges in achieving Financial Inclusion

♤ Inadequate last mile delivery.

♤ Lack of financial literacy, lack of awareness of financial services and products, social exclusion and the unsuitable products for the poor.

♤ Naxal Movement, low Return-on-Investment (ROI), operating expenses inhibits banks from expansion in rural areas.

♤ Low formal link of micro and small enterprises.

♤ Seasonal inflow of income from agricultural operations.

♤ Migration from one place to another.

♤ Seasonal and irregular work availability

♤ Over indebtedness.

♤ Agrarian Distress

The two most prominent model of Financial Inclusion in India are:

♤ Business Correspondent model

♤ Bank led or Brick and Mortar Branch Model