Role of banking sector and financial inclusion Dr. Bharadi H H Assistant Professor, Deportment of Studies in Economics, Rani Channamma University, P G Centre, Nandimath Law College, Bagalkot, Karnataka State Online published on 7 April, 2014. Abstract The focus of economic policy in India has shifted to issues of equitable distribution of growth. Economy should maintain the tempo of economic growth but also spread the benefits of growth to all sections of the population and geographical regions of the country. Financial inclusion is identified as a key strategy to achieve the inclusive development in all sections of the society. It is a necessary condition for financial deepening, which will address the basic issue of growth with equity in India. Apart from addressing the issue of inequality, the financial inclusion may also make the poverty reduction efforts more effective by explicitly creating productive economic opportunities for the poor and vulnerable sections of the society. The inclusive growth by encompassing hitherto excluded population can bring in several other benefits to all in the economy. There are supply side and demand side factors driving Inclusive Growth. Banks and other financial services players expected to mitigate the supply side processes that prevent poor and disadvantaged social groups from gaining access to the financial system, apart from the supply side factors, the demand side factors, such as lower income and asset holdings also have a significant bearing on inclusive growth, financial stability, economic stability and inclusive growth with stability are an important objective of the government, it is not possible without achieving financial inclusion. Hence, the present study is undertaken on the some of the supply side institution and their role in mitigating the economic problems in India through the financial inclusion. Top Keywords Financial inclusion, banking sector, priority sector, Self Help Group. Top |