Financial Inclusion: GOI initiatives to boost Social in 2021

What is the scope of financial inclusion?

What are all the services you think should be included in financial inclusion? deposits? Transfer of resources? loans? Although we do not have official information on what all financial inclusion services should look like, there are basic banking services that enable social and financial inclusion –

• Access to bank accounts

• Immediate credits

• Direct microloans to small businesses, education or agriculture

• Savings and deposits

• Health plan

• Transfer of resources

• Investment or consulting services

• Pension for the elderly

• In general, any financial transaction through a regulated channel is a common goal.

Challenges for financial inclusion in India

India is the land of cities and farms, but banking and banking services still reach about 19% of the Indian population. Some of the challenges facing institutions, NGOs, and fintech enterprises include:

• Lack of business model

• No scope and digital coverage

• Percentage of lower education

• It is expensive to open a local branch

Indian Government Initiatives to Promote Social and Financial Inclusion

Pradhan Mantri Jan Dhan Yojana

One of the most important and important schemes with which people can open a bank account, a simple payment account without minimum / very low balances and no commissions.

• Insurance and pension system

The Indian government has launched Pradhan Mantri Suraksha Bima Yojana (accident insurance), Atal Pension Yojana (disorganized sector), and Pradhan Mantri Jeevan Jyoti Yojana (life insurance) to provide social and economic security to disadvantaged sectors of society.

• MUDRA Business Support Bank

The Micro Units Development and Refinancing Bank (Banco MUDRA), launched in April 2015, offers low-interest loans to empower rural or remote businesses.

• Permanent in India

Another program launched by the Indian government calls for all banking sectors in the public sector to support an association of women and minorities.

• direct transfer of government benefits

Since BPL rewards are now credited directly to their accounts, the Indian government wants to transfer donations and funds directly to the recipient’s account and remove the middle level.

• Microfinance Company [MFC]

MFC, which provides microcredit to farmers, landowners, and ladies huts, helps structure the financial lending service and helps people get out of the debt trap of creditors.

• VAT

As the ordinary tax indicates, the tax on goods and services in India is a comprehensive tax destination based on various destinations with any added value. GST also offers the benefits of financial inclusion through:

• Tax simplification

We all know that, with the exception of the CA, accountants and some academics charge fees and that the resulting rules for many of us are still certain. We saw a discussion about why the restaurant charges my account VAT or service fees. Or do we not watch a TV commercial where a farmer on his cell phone asks for seed for his farm? Do you think he will understand why he has to pay VAT? or if he lives in Maharashtra, why would Octroi pay? Or how a farmer selling his handmade products in Maharashtra tries to understand why the administration fee in Pune Octroi applies. With a uniform tax system, it is easy to learn, making it easier for individuals to accept it.

• A scanning system

To automate the scan, you need a system that can detect tax channels. With many tax laws, it is difficult to integrate them into one system. So we have often seen that people do not pay taxes because there was no system to find it in cash or outside the formal system. With solutions now available on mobile devices, it’s easy for anyone in rural areas to keep track of their sales/purchases in all cases.

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