Trends and reforms of financial inclusion in India

ABSTRACT Financial Inclusion means providing basic financial products and services to marginalised groups in society in a cost-effective manner. It is an aspect of financial development which helps to achieve higher growth, reduced inequality and reduced poverty. This article undertakes a thematic literature review of factors responsible for financial exclusion, recent trends regarding inclusion, and policy initiatives by government and regulatory bodies. The literature suggests that low earnings, gender gap, ignorance towards marginalised groups, low degree of financial literacy, remote locations and cultural barriers are all important issues behind financial inclusion. There have been improvements in the extent of inclusiveness alongside various reforms and the development of the digital infrastructure, especially during the past decade. However, certain aspects still necessitate pre-emptive measures by the authorities.