Financial Inclusion

Yet Another Ritual or An Integrated Tool for Poverty Alleviation?

Banking on the Unbanked.

AGENDA
What is Financial Exclusion? Financial Inclusion- Definition. Financial Inclusion-The Business Opportunity. State Bank Of India. Bank Of Baroda. Canara Bank. NABARD. Low Cost ATMS. Advantages

WHAT IS FINANCIAL EXCLUSION?

No Savings No assets Financial Exlusion No Insurance

No bank account

No affordable credit

No access to money advice

3

Who are Financially Excluded & Consequences Of Financial Exclusion

WHO ARE FINANCIALLY EXCLUDED Poor Socially under-privileged Disabled Women Uneducated Ethnic Minorities Un-employed Major Threats Losing opportunities to grow Country's growth will retard Business loss to banks Employment barriers Loss due to theft

Financial Inclusion - Definition

The process of ensuring access to financial services and timely and adequate credit which are needed by vulnerable groups such as weaker sections and low income groups at an affordable cost.
- NABARD

Financial Inclusion-The Business Opportunity

65% people in India do not have a bank account 87% of Indias poor depend on Pvt money lenders that charge high interest rates. The insurance penetration in India is as low as 5%. An average Indian pays 8% for credit whereas an average rural Indian devoid of formal credit pays 48%. The number of mobile phones in rural India is more than the number of borrowers from banking system.

State Bank Of India (SBI)

Largest commercial bank in India Bank with largest branch network 9247 Rural and Semi-urban branches 6473 It has 30 RRBs in India The rural banks of SBI is spread in 13 states extending from Kashmir to Karnataka and Himachal Pradesh to North East The Bank is also involved since1973 in non-profit activity called Community Services Banking. Micro finance deeply ingrained in SBI.

Some rural projects Of SBI

SBI TINY ACCOUNT Opening of simple savings accounts for the villagers with zero balance. SBI Mitra assists in opening account. Drop Box for depositing cash at the SBI Mitras shop / house. Small emergency loan. Started in Bahirgaon village in Maharashtra .

SBI FOR A CARDLESS SYSTEM

SBI has been very innovative in the use of technology for financial inclusion. The banks now dont rely on smart cards and instead rely on POS machines. These will have biometric details of account holders stored in them, and will travel to villages where the customers can carry out transactions including receipt of payment of cash under social security schemes of the government by just recording their fingerprint.

BANK OF BARODA
Bank of Baroda has adopted the whole village approach as part of its mandate for financial inclusion by extending banking services to the countrys rural population. Villages in Dungarpur district of Rajasthan were among the first 500 villages to benefit from the Banks financial inclusion The Bank has taken a number of initiatives such as opening of specialised outlets of Gram Vikas Kendras (GVKs), Multi Service Agencies(MSAs) and the Baroda Swarojgar Vikas Sansthan (BSVS).

The Baroda Kisan Credit Card (BKCC) is yet another facility offered by the Bank to empower the farmer In 2007-08 BoB launched the Baroda Grameen Paramarsh Kendra (BGPK) a centre for knowledge sharing, problem solving and credit counselling for the rural communities. Bank of Baroda has also announced plans of adopting more villages across the country. It plans to disburse credit worth Rs 1 billion, over the next three years in these villages.

CANARA BANK
Over 48 Canara Gramin Vikas Vahinis fan out to villages across the country every day under the Canara Banks financial inclusion initiative Canara Bank has adopted technology and co-developed bio-metric voice enabled Smart Cards along with the technology provider. The Smart Card has brought banking to the doorsteps of the villagers.

The bank has also engaged the services of business correspondents who are able to reach out to the villages with hand held devices. Mobile voicebased ATMs, seven of which now operate nationwide, are part of the drive. The bank also provides training to artisans It has also helped set up several women self-help groups (SHGs).

NABARDs Largest Financial Inclusion Programme in the World 58 million poor households provided access to banks through 3.48 million SHGs. Savings of SHGs with banks $ 703 million. Bank loans availed by SHGs $ 2473 million SHG- Bank Linkage programme in India facilitated by NABARD, implemented by Banks, NGOs and Government agencies

Low Cost ATM

Vortex Engineering developed a low-cost all-purpose ATM, for rural areas Compared to other ATMs it has features like

like low power consumption, no need for airconditioning. built-in battery backup for four hours of operation even under power failure, capability to run on solar power, ability to accept even soiled notes for dispensing and,

Finger print authentication as a standard feature.

Benefits Of Inclusive Financial Growth

Growth with equity Get rid of poverty Financial Transactions Made Easy Safe savings along with financial services Inflating National Income Becoming Global Player

Thank you for your Attention

Presented by:
Saud Diladar-61 Mohin Khan-62 Moiz Kanchwala-63 Muffadal Mandasaurwala-64 Mukul Upasani-65