Govt charts roadmap for Financial Inclusion 2.0, focuses on NE region

The Finance Ministry is preparing the Financial Inclusion 2.0 roadmap to ensure universal banking access. Key goals include strengthening rural banking infrastructure, providing formal credit, and achieving insurance and pension for all citizens by 2047.

M. Nagaraju, Secretary, Department of Financial Services (DFS), Ministry of Finance, chaired a meeting at New Delhi today to deliberate on the preparation of the roadmap for Financial Inclusion 2.0.

During the meeting, Nagaraju emphasized the need for further strengthening measures, such as presence of at least one bank branch in each subdivision in the North Eastern region, enhancing insurance and pension coverage for all citizens and formulating strategies to bring individuals currently outside the formal credit system into the mainstream credit framework.

As per the statement released by the Ministry of Finance, the discussions centered on the preparation of a comprehensive plan document aimed at furthering the goal of financial inclusion across the country. A primary focus was on ensuring universal access to banking services so that every citizen, irrespective of geographic location or socio-economic status, is able to avail basic financial services in a convenient and affordable manner.

Strengthening Banking Infrastructure

Deliberations also emphasized the need for augmentation of banking infrastructure in villages, particularly in underserved and remote areas. Strengthening the physical and digital presence of banks through branches, banking correspondents, and technology-enabled solutions was identified as essential to bridge the rural-urban divide in financial access.

Expanding Access to Formal Credit

Another key area of focus was the availability of formal credit, especially for women and other vulnerable sections of society. The discussions underscored the importance of expanding affordable and timely credit facilities to empower these groups, promote entrepreneurship, and reduce dependence on informal lending channels.

Universal Social Security Coverage

The roadmap further aims at achieving the vision of "Insurance and Pension for All" by 2047. Expanding the coverage of social security schemes and encouraging wider participation in insurance and pension products were highlighted as critical steps toward ensuring long-term financial security for citizens.

Fostering Digital and Financial Innovation

Participants also stressed the development of innovative digital and financial products tailored to the evolving needs of customers. Leveraging technology to design user-friendly, secure, and inclusive financial solutions was viewed as central to deepening financial inclusion.

Promoting Digital Transactions

Special attention was given to increasing the penetration of digital transactions, particularly in rural and semi-urban areas. Strengthening digital payment infrastructure, enhancing connectivity, and building user confidence in digital platforms were identified as necessary measures to promote a less-cash economy.

Enhancing Financial Security and Awareness

The discussions further highlighted the importance of increasing awareness about financial frauds, including digital frauds. Proactive awareness campaigns and customer education initiatives were considered vital to safeguard consumers and build trust in the financial system.

Integrating Financial Education

The plan underscores the need to impart financial and digital literacy not only to adults but also to students at the secondary and senior secondary levels. Integrating financial education into curricula and community outreach programs is expected to foster informed financial decision-making and promote responsible financial behavior from an early age. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)