The current decade is the watershed period for financial inclusion in India as it marks a paradigm shift in the approaches of banks and financial institutions, thanks to the regulatory push and the demand pull as well as the increasing number of banking outlets in rural areas.
Despite the current efforts from banks and government, almost half (44%) of the Indian population still lack access to a savings account.
Banks fail to provide the rural market with relevant products, and find it difficult when faced with barriers such as illiteracy, language differences, small transaction size and higher credit risks.
To achieve success in financial inclusion, we need a fresh approach to financial inclusion.
Banks must create tailored products that clearly address the needs of their new client base – not stripped-down versions of their existing products and services. They must involve and collaborate with all the stakeholders to create a sustainable ecosystem to address the unique requirements of the rural consumers.
Read the full article written by Rana Kapoor published on The Hindu Business Line here.
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