FINANCIAL INCLUSION AND RURAL-URBAN DIVERGENCES IN INDIA

Abstract: Inclusive growth empowers people belonging to vulnerable sections depend on financial inclusion, which is promoting inclusive growth and helps in reducing poverty by providing regular and reliable sources of finance. In this direction, the drive for financial inclusion has taken several measures to increase the access to and availing of formal financial services by un-banked households. The purpose of this study is to assess the nature and extent of financial inclusion and its effect on the socio-economic status of households focusing on inclusive growth. It has been analyzed with the theoretical background on financial access and economic growth and by evaluating the existing literature on financial inclusion in the country and outside. The results show that there is a disparity in nature and extent of financial inclusion. Facilitating access to and availing of formal financial services pave the way to positive changes in the socio-economic status of households which are correlated, leading to inclusive growth based on which the study proposes to make the financial system more inclusive and pro-poor.

Keywords: Financial Inclusion, Financial services, Banking, Inclusive Growth.