Peeking through the financial inclusion tripod

Financial inclusion gained prime importance since 2005 when Rangarajan Committee was set up to review the banking practices hindering inclusive growth. India recognized the need for inclusive growth at the onset of independence. Unfortunately, in spite of having a far-fetched vision and well intended policies, she is still struggling to achieve its goal of financial inclusion. This paper reviews the important initiatives undertaken by the government and RBI since 1950 and tries to explore why India failed to achieve financial inclusion in spite of having identified the problem much before the world had realized. It tries to contemplate why commercial banks are unable to synchronize with the financial inclusion philosophy of RBI.  Using in-depth secondary research, it is found that commercial banks are adhering to financial inclusion guidelines under compulsion. Populist measures by the state, information asymmetry and inadequate physical and digital infrastructure have emerged as the key disablers towards achieving inclusive growth.