Financial Inclusion
Financial Inclusion is the process of ensuring access to financial products and services for all. These services include bank accounts, credit, insurance, and pensions. They must be available at an affordable cost to all sections of society. In India, the main goal is to reach the 'unbanked' population living in rural areas. Opening a physical bank branch in every small village is very expensive for banks.
Concepts (3)
DBT is a mechanism to transfer subsidies directly to the bank accounts of beneficiaries. This removes middlemen and 'ghost beneficiaries' (fake names). It ensures that 100% of the money sent by the government reaches the intended person.
DBT is a mechanism to transfer subsidies directly to the bank accounts of beneficiaries. This removes middlemen and 'ghost beneficiaries' (fake names). It ensures that 100% of the money sent by the government reaches the intended person. A classic example is the transfer of MNREGA wages directly to a laborer's account.
AePS is a bank-led model that allows online transactions at Point of Sale (Micro-ATM) through any Business Correspondent using Aadhaar authentication. You only need your Aadhaar number and your fingerprint to access your money.
AePS is a bank-led model that allows online transactions at Point of Sale (Micro-ATM) through any Business Correspondent using Aadhaar authentication. You only need your Aadhaar number and your fingerprint to access your money. This removes the need for physical signatures or plastic cards, making it perfect for rural India.
A Business Correspondent is a bank's representative in a village. They use a small machine called a Micro-ATM. They help villagers open accounts, deposit cash, and withdraw money. They are essential because banks cannot build branches everywhere.
A Business Correspondent is a bank's representative in a village. They use a small machine called a Micro-ATM. They help villagers open accounts, deposit cash, and withdraw money. They are essential because banks cannot build branches everywhere. For example, a local grocery shop owner can act as a BC for a large bank like SBI.
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Start Lesson: Direct Benefit Transfer (DBT)