Legal Framework of Financial Inclusion in India- A Critique
DOI:
https://doi.org/10.55184/dmejl.v1i01.48Keywords:
Financial Inclusion, Banking Law, PMJDY, FinanceAbstract
Financial inclusion has been a catchword for the policymakers and the governments over a long period of time and has acquired a renewed zeal and dimension lately. Despite the upward growth of banking sector, a huge segment of Indian population continues to remain financially excluded even after attaining 67 years of our independence. Since, the financial inclusion is one of the cardinal objectives of any developing country since there exist an inextricable link between the financial exclusion and the poverty. An intriguing feature which emerges from the global practice is that the more developed the society is, the greater the push is on the empowerment of the common person and low-income groups through banking system. Towards this end, the Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Mudra Yojana (PMMY), and Direct Benefit Transfer (DBT) were some of the flagship schemes of the Central Govt. aimed at linking the ‘unbanked’ with the banking system. However, in India, the focus of the financial inclusion at present is confined to ensuring a bare minimum access to a savings bank account without frills, to all. Internationally, the financial exclusion has been viewed in a much wider perspective. The present paper seeks to examine the existing legal framework of financial inclusion in India, assess the role and contribution of the State in the process, and highlight key issues and concerns.
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