Inclusive financial approach crucial for economic growth, social equity: Govt official

New Delhi, March 5: To achieve the vision of a developed India by 2047, we need a broad-based and inclusive financial approach as a crucial wheel for the growth of the economy and social equity, a senior government official said on Wednesday. Anita Shah Akella, CEO, IEPF Authority and Joint Secretary, Ministry of Corporate Affairs, said financial inclusion encompasses key elements such as access to the payment system, credit, insurance and investment opportunities, all of which require government policies for an effective implementation.

“The JAM (Jan Dhan, Aadhaar, Mobile) trinity has made access to banking so easy and simple for everyone, making the world take note. Innovations both in the public and private sectors have driven digital financial inclusion and policy measures and initiatives have been instrumental in making the financial services more accessible,” said Akella at the third ‘National Conclave on Financial Inclusion’ organised by Assocham here. Financial institutions themselves have played a crucial role in promoting inclusivity, particularly through the microfinance services that cater to the low-income population.

“The expansion of the digital transaction platforms and services like the immediate payment services, IMPS and the digital wallets have made transactions more seamless, secure and cost effective, she told the gathering. Along with financial inclusion, there is a need for financial literacy and organisations such as IEPFA, BSE, SEBI and RBI are working to spread financial literacy to the people. “Programmes like ‘Niveshak Didi’ and “Niveshak Sarthi’ have been instrumental in driving financial literacy, especially among women”, she added.

Sharing his insights on financial inclusion, P.R. Seshadri, MD and CEO, South Indian Bank Ltd, said that financial inclusion begins with access, and we must applaud the stellar role played by the nationalised banking system in making access so ubiquitous. “Today, the levels of access that we have in our country is significantly higher than our competitors in a similar state of being. Interest rates in the country have moderated significantly highlighting the difference that access makes,” Seshadri said at the event. The banking system has made access possible and the actions of the government of India are helping the next step, which is enablement. The enablement process requires incremental resources, which private entities cannot perhaps bring to bear, said experts.