The available statistics and the study of (Dr.

Chakrabarty is deputy Governor,RBI,2007) reveal that we have opened over 28.23mn no-frill a/c, but less than 11% of them are active. Opening no-frills accounts will not give any help to the poor if they do not conduct any transactions today, the number of rural bank branches is only 31,727 as against more than 600,000 villages in the country. Similarly, the metros and urban centers. Again there are 470,237 points of sale(POS) but theses are of little use to the rural poor as they cant deliver cash, which is what they need. Today, a bank branch covers a population of 16000. So it is clear that bank branch- based delivery model will not work we have to go for a different delivery mechanism. The poorer the group, the greater is the exclusion (Rangarajan, 2007). Only 27% of the total farm households are indebted to formal sources; in the words 70% of the farmhouse do not have access to formal credit sources ( Rangarajan, 2007). The RBI guidelines to banks show that 40% of their net bank credit should be lent to the priority sector. This mainly consist of agriculture, small scale industries, retail tradeetc. More than 80% of our population depends directly or indirectly on agriclutre. So 18% of net bank credit should go to agriculture lending. Recent simplication of KYC norms are another milestones. Financial inclusion is a great step to alleviate poverty in india. But to acheieve this, the government should provide a less perspective environment in which banks are free to pursue the innovations necessary to reach low income consumers and still make a profit. Financial servies providers should learn more about the consumers and new business models to reach the.(Usha Thorat,2009).