Bank led Model:

The bank- led model requires increasing density of bank branches to promote financial inclusion. The goal of financial inclusion is better served through mainstream banking institutions as only they have the ability to offer the suite of products required to bring in effective/meaningful financial inclusion.

However, in rural and remote areas, it is not always financially viable to operate bank branches. To overcome this challenge, the Banking Correspondence model has been adopted by many banks.

Thus, India requires blend of both the models to promote financial inclusion. The job of BC need to be made more specialized and adequate training should be imparted. On the other hand, banks should partner with new finance – technology companies to promote financial inclusion.

10. Instead of running piecemeal schemes that do not address the specific challenge of poverty-ridden households it is better to use concrete tools such as SECC. In light of the above statement, explain how SECC data can be utilized to address multi- dimensional aspects of poverty.Answer:11. Rising income inequality is a widespread concern for advanced as well as emerging economies. Illustrate how inequality impedes economic growth. Also, examine the steps taken by India to tackle income inequality.Answer: