DEMONETISATION AS A PRELUDE TO COMPLETE FINANCIAL INCLUSION

Abstract

Financial Inclusion is a systematic effort to provide essential financial services to all and especially to poor people. The origins of the current approach to financial inclusion can be traced to the United Nations initiatives, which broadly described the main goals of inclusive finance as access to a range of financial services including savings, credit, insurance, remittance and other banking / payment services to all ‘bankable’ households and enterprises at a reasonable cost.  The availability of quality financial services in rural areas is extremely important for the growth of the economy as this will enable the large number of rural households to fund the growth of their livelihoods. This concept has been pushed up by Government of India and RBI because even after so many years of independence  high population of India remained unbanked . The main reason is majority of population lived in rural areas  and they are not literate enough to understand the advantages of financial services. This paper focus on various initiatives taken by Government and RBI and also the latest attempt of demonetisation and its expecting impact on various sectors.