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Financial Inclusion-case study
Financial Inclusion is a need which has been capturing the attention of the governments and policy makers all over the world. It is a process by which banking services as well as other financial services can be extended to the poorest of the poor in a country. There can be multiple levels of financial inclusion. Banks have at one end the high end customers for whom they are offering wide range of products & services. At the other end there are customers having only the savings bank accounts & withdrawal facilities. Governments have followed different approaches to achieve financial inclusion .The US government expanded the scope of financial inclusion through statutory enactments. e.g. Community Reinvestment Act. In France, it is a statutory right of every individual to have a bank account. Internationally Financial Inclusion has a wider perspective, a mere current & saving account holdings cannot be an accurate indicator for the financial inclusion.
A financial inclusion taskforce in UK identified three priority areas namely 1) Access to banking 2) Access to affordable credit 3) Access to advisory services.
UK has established a financial inclusion fund for removing financial exclusion. A post office card account has been created for people who are unable to access basic bank account. Community Advance Finance initiative was introduced to promote financial literacy among people. Housing Reimbursement Act in US prohibits discrimination by banks against low & moderate income households. Financial Inclusion leads to an increase in opportunities for employment by availing bank finances and other services and generates higher income. On the other hand, studies conducted revealed that financial exclusion can lead to income inequalities & consequent social unrest. Financial Exclusion is also believed to

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