C Rangarajan committee

C Rangarajan committee
Financial Inclusion
The committee is of the view that “while financial inclusion can be substantially enhanced
by improving the supply side or the delivery systems, it is also important to note that many
regions, segments of the population and sub-sectors of the economy have a limited or
weak demand for financial services.
In order to improve their level of inclusion, demand side efforts need to be taken including
improving human and physical resource endowments, enhancing productivity, mitigating
risk and strengthening market linkages. However, the primary focus is on improving the
delivery systems, both conventional and innovative.
The essence of Financial Inclusion is to ensure that a range of appropriate financial
services is available to every individual of the country. This should include:
1. Regular financial Intermediation such as Banking which includes basic no frills accounts
for sending and receiving money.
2. Saving Products which are suitable to the pattern of cash flow of the poor household.
3. Availability of the Money transfer facilities
4. Availability of small loans and overdrafts for productive , personal and other uses.