Of self-help groups and financial inclusion in poverty reduc

Of self-help groups and financial inclusion in poverty reduction


Of self-help groups and financial inclusion in poverty reduction
June 9, 2021, 4:38 PM IST
T S Haokip is a former development professional who has served as a consultant in the Ministry of Rural Development, Government of India. He is a freelance writer and has contributed to various leading Newspapers and Magazines in various State, Regional and National Dailies/Magazines. He has published a book titled HILLY DREAMS LESS... MORE
Financial inclusion, in its narrowest connotation, is generally presumed as an endeavour that provides people, especially those in the hitherto un-banked region, a bank account. However, that mere possession of a bank account cannot bring wonders, in addition to the fact that the same is incomplete to define the intended meaning of financial inclusion. What is critical is the facilities endowed to the individuals having a bank account. The Direct Cash Transfers have considerably controlled the leakage of funds meant for targeted beneficiaries – poor. Also, the poor can have access to insurance products with nominal premiums through their bank accounts. Not to forget, is the saving habits that could also be inculcated, encouraged, and improved. Most importantly, financial inclusion will have its impact when credit facilities to the poor have seen a considerable improvement both in quantity and quality.

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