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Financial Inclusion in India: Policies and Programmes

Financial Inclusion in India: Policies and Programmes

          
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About the Book

In India, while one segment of the population has access to an assortment of banking services and financial counseling, the other segment of underprivileged and lower income group is totally deprived of even basic financial services. Exclusion of large segments of the society from financial services adversely affects the overall economic growth of a country. In order to ensure financial inclusion of the poor, particularly in rural areas, various initiatives have been taken by the government and the Reserve Bank of India (RBI). These include the nationalization of commercial banks, the establishment and expansion of rural credit co-operatives, regional rural banks, urban co-operative banks, micro finance and self-help groups, mutual funds, and pension funds. There are several challenges that require concerted efforts from banks, the RBI, and India's government to ensure a convenient and cost-effective delivery of financial services to the public at large. In particular, the challenge is to introduce innovations in risk assessment, reduce transaction costs, devise new credit delivery channels, and use information technology to make financial inclusion a viable model. This book examines the various policies and programs that were implemented in order to make financial services more accessible to the country's underprivileged income groups, resulting in millions of bank accounts being opened. [Subject: India Studies, Economics, Poverty Studies, Development Studies]

Table of Contents:
1. Indian Economy: An Overview 1.1 Human and Natural Resources 1.1.1 Human Resources 1.1.2 Natural Resources 1.2 Poverty, Five Year Plans and Economic Reforms 1.2.1 Poverty 1.2.2 Five Year Plans 1.2.3 Economic Reforms 1.3 Agriculture and Allied Activities 1.4 Rural Development 1.5 Industry and Minerals 1.5.1 Industry 1.5.2 Minerals 1.6 Infrastructure Development 1.7 Fiscal Policy 1.8 Monetary Policy, Prices and Credit Management 1.9 Financial Institutions, Financial Markets and Financial Instruments 1.9.1 Financial Institutions 1.9.2 Financial Markets 1.9.3 Financial Instruments 1.10 Labour and Employment 1.10.1 Unorganized Workers 1.10.2 Agricultural Workers 1.10.3 Women Workers 1.10.4 Child Workers 1.11 Health and Education 1.11.1 Health 1.11.2 Education 1.12 Social Security of Vulnerable Groups 1.13 Environment, Disaster Management and Climate Change 1.14 Foreign Trade, Debt, Aid and Investment 1.14.1 Foreign Trade 1.14.2 External Debt and External Aid 1.14.3 Foreign Direct Investment (FDI) 1.14.4 Foreign Portfolio Investment 2. Poverty in India: Concept, Causes and Incidence 2.1 Problem of Poverty 2.2 Meaning of Poverty Line 2.3 Causes of Poverty 2.4 Poverty and Millennium Development Goals 2.5 Incidence of Poverty 2.5.1 Eleventh Plan on Poverty 2.6 Expert Group on Poverty (Chairman: Suresh Tendulkar), 2009 2.7 Twelfth Five Year Plan (2012-17) on Poverty 2.8 Planning Commission Estimates of Poverty Released in March 2012 2.9 Direct Benefit Transfer (DBT) Scheme 3. Financial System and Regulators in India 3.1 Financial System: Theoretical Settings 3.1.1 Meaning, Importance and Functions of Financial System 3.1.2 From Financial Neutrality to Financial Activism 3.1.3 From Financial Volatility to Financial Stability 3.1.4 Role of the Government in Financial Development 3.1.5 Determinants of Access to Financial Services 3.1.6 Regulation and Supervision of Financial System 3.1.7 Financial Globalisation 3.2 State Domination of India’s Financial Sector (1947-1990) 3.2.1 Nationalisation of Imperial Bank of India (1955) 3.2.2 Nationalisation of Life Insurance Business (1956) 3.2.3 Nationalisation of Commercial Banks (1969 and 1980) 3.2.4 Nationalisation of General Insurance Business (1973) 3.2.5 Rethinking on State Domination of Financial Sector 3.3 Financial Sector Reforms since 1991 3.3.1 From Financial Repression to Financial Liberalisation 3.3.2 India’s Approach to Financial Sector Reforms 3.3.3 Strategy of Financial Sector Reforms 3.3.4 International Security Standards 3.3.5 Basel II and Migration to Basel III Norms 3.3.6 Accounting and Auditing Standards 3.3.7 Technological Solutions for Financial Services 3.3.8 Legal Reforms for Strengthening Financial Sector 3.3.9 High Level Committee on Financial Sector Reforms, 2008 3.3.10 Committee on Financial Sector Assessment (CFSA), 2009 3.3.11 Financial Sector Legislative Reforms Commission (FSLRC), 2013 3.3.12 Financial Stability and Development Council (FSDC) 3.3.13 Financial Action Task Force (FATF) 3.3.14 Achievements of Financial Sector Reforms and Areas of Concern 3.4 Financial Regulators in India 3.4.1 Ministry of Finance, Government of India 3.4.2 Reserve Bank of India (RBI) 3.4.3 Ministry of Corporate Affairs 3.4.4 Securities and Exchange Board of India (SEBI) 3.4.5 Pension Fund Regulatory and Development Authority (PFRDA) 3.4.6 Insurance Regulatory and Development Authority (IRDA) 3.4.7 Monitoring Framework for Financial Conglomerates (FCs) Part II: Financial Inclusion Institutions in India 4. Financial Inclusion: Conceptual Framework 4.1 Origins of the Current Approach to Financial Inclusion 4.2 Financial Exclusion and Financial Inclusion Defined 4.3 Advantages of Financial Inclusion 4.4 Strategies for Financial Inclusion 4.5 Barriers to Financial Inclusion 4.5.1 Demand Side Barriers 4.5.2 Supply Side Barriers 4.6 Measuring and Monitoring of Financial Inclusion Impact 5. Recent Financial Inclusion Measures in India 5.1 Why Financial Inclusion? 5.2 RBI Measures for Financial Inclusion 5.2.1 No Frills Account 5.2.2 General Credit Card (GCC) 5.2.3 Business Facilitator and Business Correspondent (BC) Models 5.2.4 Passbook Facility 5.2.5 Simplified KYC Procedure 5.2.6 Credit Counselling and Financial Education 5.2.7 Use of Technology 5.2.8 Simplified Branch Authorization 5.2.9 Banking Services in Unbanked Villages 5.2.10 Financial Inclusion Plans of Banks for Three Years 5.3 Financial Inclusion Measures by NABARD 5.4 Committee on Financial Inclusion 5.4.1 Financial Inclusion Fund (FIF) 5.4.2 Financial Inclusion Technology Fund (FITF) 5.5 Committee on Comprehensive Financial Services for Small Businesses and Low-income Households (CCFS), 2014 5.6 Recent Important Guidelines on Financial Inclusion 6. Rural Credit Co-operatives 6.1 Credit Needs of the Indian Farmers 6.2 Sources of Credit for the Farmers 6.2.1 Institutional (Formal) Sources 6.2.2 Non-institutional (Informal) Sources 6.3 Co-operative Credit Societies 6.4 Co-operative Banks 6.4.1 Classification of Co-operative Banks 6.5 Rural Co-operatives 6.5.1 Short-term Rural Co-operatives 6.5.2 Long-term Rural Co-operatives 6.6 Rural Co-operatives: History and Recent Policy Measures 6.7 Primary Agricultural Credit Societies (PACS) 6.8 Problems of Rural Co-operatives 6.9 Task Force on Revival of Rural Co-operative Credit Institutions 6.10 NABARD and the Co-operative Sector 6.10.1 Credit Extended by NABARD 6.11 Advisory Committee on the Flow of Credit to Agriculture and Related Activities from the Banking System, 2004 6.12 Expert Group on Investment Credit in Agriculture, 2005 6.13 Working Group on Warehouse Receipts and Commodity Futures, 2005 6.14 Regulatory Framework and Supervision 6.14.1 Asset Classification for State Government Guaranteed Advances 6.14.2 Additional Provisioning Requirement for NPAs 6.14.3 Prudential Guidelines on Agricultural Advances 6.14.4 Inspections 6.15 Problem of Triangular Regulation of Rural Co-operatives 6.16 Agricultural Credit: Recent Policy Announcements 6.16.1 Agricultural Debt Waiver and Debt Relief Scheme, 2008 7. Regional Rural Banks (RRBs) 7.1 Nature and Objectives of RRBs 7.2 Amalgamation of RRBs 7.3 Autonomy for RRBs 7.4 RRBs as Vehicles of Financial Inclusion 7.5 Factors Influencing the Performance of RRBs 7.5.1 Area of Operation and Clientele Base 7.5.2 Capital Base and Organisational Structure 7.5.3 Loan Delinquencies 7.5.4 Cost Structure and Poor Financial Management Skills 7.5.5 Staff Structure 7.5.6 Dependence on Sponsor Banks 7.6 Restructuring of RRBs 7.7 Manpower Challenges of RRBs 7.8 Computerisation in RRBs 7.8.1 Working Group on Technology Upgradation of Regional Rural Banks, August 2008 8. Urban Co-operative Banks (UCBs) 8.1 Importance of UCBs 8.2 Vision Document and Medium-Term Framework (MTF) for UCBs 8.3 Regulation and Supervision of UCBs: Strengthening Measures 8.3.1 Memorandum of Understanding (MoU) with the State Governments 8.3.2 Licensing of New Banks/Branches 8.3.3 Income Recognition, Asset Classification and Provisioning Norms 8.3.4 Exposure Norms 8.3.5 Off-site Surveillance 8.3.6 Know Your Customer (KYC) Guidelines 8.3.7 Priority Sector Lending 8.3.8 Disclosure Norms 8.4 Mergers/Amalgamations of UCBs 8.5 Relaxation of Investment Portfolios of UCBs 8.6 Restructuring of Scheduled UCBs with Negative Net Worth 8.7 Problem of Dual Control in Co-operative Banking 8.7.1 Impairment in Governance and Management 8.8 IT Support for Urban Co-operative Banks 8.8.1 Findings of the Working Group 8.8.2 Problem Analysis and Possible Solutions 8.8.3 Issues in Computerization and Support 8.8.4 Recommendations 8.9 Working Group on Umbrella Organization and Revival Fund for Urban Cooperative Banks 8.9.1 Terms of Reference of the Working Group 8.9.2 Recommendations 9. Micro Finance and Self-help Groups (SHGs) 9.1 Micro Finance 9.1.1 Micro Finance Defined 9.1.2 Role of Micro Finance 9.1.3 Micro Finance Institutions (MFIs) 9.1.4 Legal Status 9.1.5 Problem Areas of Micro Finance 9.1.6 Micro Finance and Central Government 9.1.7 Micro Finance and Reserve Bank of India (RBI) 9.2 Self-help Groups (SHGs) 9.2.1 Self-help Group (SHG) Defined 9.2.2 Benefits of SHGs 9.2.3 SHG-Bank Linkage Programme 9.2.4 Problems of SHGs 10. Mutual Funds 10.1 Legal and Regulatory Framework 10.2 History of Mutual Funds 10.2.1 Bifurcation of UTI 10.3 Features of Mutual Fund Industry in India 10.4 Problems of Mutual Funds 10.4.1 Competition with Government Schemes 10.4.2 Competition from Insurance 10.4.3 Volatility of Mutual Fund Performance 10.4.4 Tax System Encourages Short-term Objectives 10.5 Mutual Funds and the Stock Market 11. Pension Funds 11.1 New Pension System (NPS) 11.1.1 Swavalamban Scheme 11.1.2 NPS Corporate Sector Model 11.1.3 Atal Pension Yojana (APY) 11.2 Pension Fund Regulatory and Development Authority (PFRDA) 12. Pradhan Mantri Jan-Dhan Yojana (PMJDY), 2014 12.1 Background 12.2 PMJDY: Brief Introduction 12.3 Six Pillars of PMJDY 12.4 Timeline for Financial Inclusion Plan 12.5 Strategy for Achievement of Objectives 12.6 Implementation of PMJDY 12.6.1 Reaching Out: Network Expansion and Geographical Coverage of the Banks 12.6.2 Opening of Basic Saving Bank Account of Every Adult Citizen 12.6.3 Financial Literacy and Credit Counselling (FLCC) 12.6.4 Credit Guarantee Fund 12.6.5 Micro Insurance 12.6.6 Unorganized Sector Pension Scheme (Swavalamban) 12.7 Monitoring Mechanism 12.8 Challenges Identified in the Implementation of the Mission 12.8.1 Telecom Connectivity 12.8.2 Keeping the Accounts “Live” 12.8.3 Brand Awareness and Sensitization 12.8.4 Commission to Bank on Direct Benefit Transfer (DBT) 12.8.5 Coverage of Difficult Areas 12.9 Roles of Major Stakeholders 12.9.1 Department of Financial Services 12.9.2 Other Central Government Departments 12.9.3 Reserve Bank of India (RBI) 12.9.4 Commercial Banks 12.9.5 Indian Bank Association (IBA) 12.9.6 National Bank for Agriculture and Rural Development (NABARD) 12.9.7 State Governments 12.9.8 State Level Bankers Committee (SLBC) 12.9.9 District Administration 12.9.10 Lead District Manager (LDM) 12.9.11 Local Bodies 12.9.12 National Payment Corporation of India (NPCI) 12.9.13 Unique Identification Authority of India (UIDAI) 13. Role of Technology in Financial Inclusion 13.1 Information Technology (IT) and Modern Banking 13.2 Technological Solutions for Financial Services 13.3 Technological Channels for the Delivery of Financial Services 13.3.1 National Electronic Funds Transfer (NEFT) 13.3.2 ATM Networks 13.3.3 Credit Cards 13.3.4 Satellite Banking 13.4 Technology for Financial Inclusion 13.5 Use of Technology for Pradhan Mantri Jan-Dhan Yojana (PMJDY), 2014 13.5.1 Electronically Know Your Customer (e-KYC) 13.5.2 Transaction through Mobile Banking 13.5.3 Immediate Payment System (IMPS) 13.5.4 Micro ATMs 13.5.5 National Unified USSD Platform (NUUP) 13.5.6 RuPay Debit Cards Appendix: Main Findings and Recommendations of the Committee on Financial Inclusion (Chairman: C. Rangarajan), January 2008 Bibliography; Index


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Product Details
  • ISBN-13: 9788177084085
  • Publisher: New Century Publications
  • Publisher Imprint: New Century Publications
  • Depth: 25
  • Height: 249 mm
  • No of Pages: 312
  • Spine Width: 28 mm
  • Weight: 929 gr
  • ISBN-10: 8177084089
  • Publisher Date: 31 Jul 2015
  • Binding: Hardback
  • Edition: 1
  • Language: English
  • Returnable: Y
  • Sub Title: Policies and Programmes
  • Width: 191 mm


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