Essay on Financial Inclusion: Financial inclusion is an individual policy that is adopted by many countries in order to boost the financial set up of the country. Through this policy, countries try and include more people in the financial infrastructure of the nation.
This policy has an aim to reduce poverty and bridge the gap of inequality. It aims to tackle the deprivation of a country. In the simplest of terms, financial inclusion tries to boost the banking sector of a country.
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Long and Short Essays on Financial Inclusion for Students and Kids in English
We provide students with samples of essays on a long essay of 500 words and a short essay of 150 words on the topic “Financial Inclusion” for reference.
Long Essay on Financial Inclusion 500 Words in English
Long Essay on Financial Inclusion is usually given to classes 7, 8, 9, and 10.
Discharging financial assistance to the underprivileged people, those belonging to the low-income group, and the unbanked people, at a minimal cost is termed as financial inclusion. Such a policy makes the availability of equal opportunities for all to avail equitable financial services.
This policy includes several types of services, like loans, equity, banking, and insurance products. The most common form of services is debit cards, credit cards, and facilities for internet banking. These services are very common, cheap, and convenient, making payments for several goods and services easier. There are, however, several people to date who are excluded from these all types of services because they have limited access to it.
An estimation made in the year 2018 reported that almost 1.7 billion adults in the world do not have a bank account. A large chunk of this 1.7 billion adult were women and poor people residing in rural areas. Not every individual on the planet needs financial services, but the objective of financial inclusion is to remove the barriers to these services. The people who have no access to these services keep missing out on such opportunities and cannot benefit from most of the available financial products. There are many developing countries, like Nepal, Bangladesh, Pakistan, Afghanistan, where the people do not hold even a basic bank account. The disadvantage for these people is that they cannot ask for any form of a loan.
The people in various developing and emerging countries have numerous superstitions, lack of knowledge, or even fear regarding institutions like banks. The fear of people regarding paper works and documentation also poses a barrier to financial inclusion. The sine qua non of a society that is open, efficient, and running is unrestrained to reach out to public goods at affordable costs. Strong efforts are being taken from the government’s side in various countries to propagate the advantages of using financial services. The growth of a proper education system is another factor that contributes to proper policy formulation of financial inclusion.
Like the United States, many countries were successful in taking early steps, like the adoption of microfinance ideals. The USA took this step in the latter half of the 1980s. In the case of India, there are large scale regional disparities in terms of financial stability. Financial exclusion of a particular section of the people is why such widespread poverty and low income. The poor people remain poor for eternity as they have no access to financial institutions. So in a country like India, the need for financial inclusion is immense.
The Indian government has been trying to bring unity among the people from the various financial classes. The Grameen Bank is one significant step that has been successful partially to get some solutions. The Khan commission is devoted to the sole responsibility to look into financial inclusion by the Reserved Bank of India. This committee has taken several steps like GCC or General Credit Cards so that the disadvantaged people can get easy access to credits and loans.
Short Essay on Financial Inclusion 150 Words in English
Short Essay on Financial Inclusion is usually given to classes 1, 2, 3, 4, 5, and 6.
Financial inclusion is a policy that looks forward to removing all forms of financial barriers in the country. Although not all people in one country need access to financial services, people mustn’t be devoid of it. Many people even lack bank accounts and fail to access loans in times of need.
Microfinance initiatives that were the earliest form of financial inclusion initiatives are an indicator of wide credit availability. The United States took such a step in the 1980s. Many people live in poor communities and have neither choice nor access to basic monetary services. Financial inclusion policies make banking services affordable and reachable to disadvantaged social groups. Countries like India have long taken some basic steps to bridge the financial gaps. The Reserve Bank of India has chosen steps like KYC or Know Your Customer, Business Correspondents, Business Facilitators, to adopt a financial inclusion policy.
10 Lines on Financial Inclusion in English
- Technology plays an important role in establishing financial stability.
- The world’s largest financial inclusion policymaker is Alliance for Financial Inclusion.
- The Alliance for Financial Inclusion was authorized in 2008.
- AusAid supports the Alliance for Financial Inclusion.
- Financial inclusion includes services like bank accounts, credit, and debit card facilities.
- Microfinance initiative is an important step in stabilizing finance.
- The Philippines have established a nascent credit scoring system.
- In Tanzania, only 11% of the population had bank accounts till 2006.
- By 2019, almost 75% to 80% population had financial service access.
- Financial inclusion is an earmarked policy.
FAQ’s on Financial Inclusion Essay
The United Nations financial inclusion is financed by which organization?
The funding is provided by the United Nations Development Programme or UNDP.
What are some goals of financial inclusion?
There are numerous goals of financial inclusion policy. Some important goals are access to financial services at an affordable cost, justified payment services, and transfer services provision. Even proper credit and insurance facilities are some aims.
What is the importance of financial inclusion?
Financial inclusion is useful to spread awareness regarding financial services. It creates a proper bridge that helps remove the gap of financial inequality.