Role of Banks in Financial Inclusion and Rural Development

Abstract

The objective of the paper is to understand how financial inclusion through cooperative banks can be a viable option for inclusive growth in India. The present study is based on secondary data. Financial inclusion has become one of the most critical aspects in the context of inclusive growth and sustainable development in developing countries like India. Financial inclusion is a process of ensuring access to suitable financial products and services needed by susceptible groups such as weaker sections and low-income groups at an affordable cost in a fair and transparent manner by mainstream financial institutional players. In our country, Reserve Bank of India (RBI) has formulated the policy of financial inclusion with a view to provide banking services at an affordable cost to the disadvantaged and low-income groups. It is evident that banks have feasible options for inclusive growth through rural development, creating opportunities for employment and income generation.