FINANCIAL INCLUSION AND STUDENTS Social justice has been accorded top priority in the Constitution of India.

Growth with justice has been at the core of the ongoing economic and financial sector reforms. Besides, Indian banks have been given the responsibility of acting as the prime movers in the process of planned development with the objectives of economic growth and social justice. Banks have, therefore, inter alia, formulated various schemes to provide access to the common man. However, about sixty percent of Indian population is estimated to be outside the monetized sector. Financial inclusion will ensure economic growth with social justice and harmony. Financial inclusion pursued by banks since 2004 envelopes the role of education and what needs to be done with a clear cut plan and approach (blue print) is to involve student participation - as a part of co-curricular activity - to bring about dynamic and drastic positive changes in the neighborhood by improving the quality of life of the underprivileged sections of the community in accordance with the policy objectives of our welfare Government and the proposal is a feasible one and shall serve as a model at local, district, State and National level as well to meet the aspiration s of the common human. The banking system is required to ensure monetization through coverage of all the unbanked clusters with a population of 2000 by the year 2012 and according to the Financial Inclusion Plan, 3.48 lakh villages are required to be covered to reach this target. Student Participation Students in India have a constructive role to play in nation building. Therefore, it is proposed to select a few of them as pioneers on an experimental basis, guide them to engage themselves in transforming the lives of the economically poor and illiterate families in the neighborhood of Colleges to positively contribute towards this national goal. These students will ultimately become instruments of social change, in accordance with the objectives of education itself. In the process, they begin to understand the very purpose of studying banking or finance or

economics as a subject and are aware of suitable banking and insurance products to recommend and deliver, to bring about desired positive changes in real life of the weaker sections. The method is application of the theory into practice to promote social welfare. Reserve Bank of India (RBI) notified on April 24, 2008 that banks could engage individuals as Business Facilitators and a range of service providers to act as Business Correspondents and also permit banks to charge fees from customers for using them. Microfinance has generally taken one of the following three forms: i) Self-Help Group (SHG) programme that has linkages with banks, ii) cooperatives, or iii) Grameen bank branches. Organized SHGs consist of 10 to 12 people with similar socio-economic and demographic characteristics (e.g., low-income women in rural or urban slums). The purpose of the SHGs is to help the members save small amounts of money on a regular basis, to create an internal insurance fund for members to draw on in times of emergencies, to empower the members through collective decision-making, and to extend uncollateralized loans to group members. Since 1992, the National Bank for Agriculture and Rural Development (NABARD) has experimented with creating linkages between SHGs and banks. Such banks lend through Non-Governmental Organizations (NGOs) or directly to SHGs. Banks continue to encourage creation of relationships with SHGs and institutions such as Post offices and Mutual funds. Micro credit extended to the small borrowers by various commercial banks is reckoned as part of priority sector advances by the Reserve Bank of India and the Government of India. Micro credit is defined as the provision of thrift, credit and other financial services and products of very small amount to the poor in the rural, semi-urban and urban areas for enabling them to raise their income level and improve living standards. In sum, micro credit is a linkage between the underprivileged citizens who do not have any security to offer to procure even a small loan, and banks themselves.

The National Bank for Agriculture and Rural Development (NABARD) administers and regulates the prescriptions through Regional Rural Banks (RRBs) and other bank branches, including co-operative banks. Quality of life of the common man is to be touched ultimately by the banking system through the features of link SHG, a popular bank product, and a bank which has become a part and parcel of contemporary banking business. According to Prof.Muhammad Yunus who has been awarded the Nobel Peace Price in 2006, microfinance originated in India and it is not going as fast as it should. However, in Bangladesh, it has reached 115 million people in 30 years. At that rate, India should have reached 160 million. Taking a cue from Prof. Yunus, it is suggested that with student participation (he has not suggested this while addressing at the Mumbai University) we, Indians can reach the underprivileged citizens faster to enable them to get out of poverty. For instance, bancassurance has already been in vogue in India and if poor farmers are granted micro credit to spend on seeds, fertilizer or land whatsoever, and insurance is added, without any collateral farmers suicide can be avoided. In urban slums, it can transform the quality of life of the people. The proposal is a feasible one and shall serve as a model as a pioneering effort of the Mumbai University to begin at local, district, State and National level as well to meet the aspirations of the common human. The 12 digit Aadhaar (Unique Identification Authority of India) is a cost effective way in reaching out to vast group of Indians hitherto financially excluded by identifying them and to access to formal institutional finance which would benefit the poor in the rural and urban India. Viable innovative business model can thus be created in an approved manner utilizing their energy and increasing revenue for banks and also transformation.