A citizen may be financially included but may not be financially integral part of the Indian economy. Analyse in the context of financial inclusion (200 Words)
Refer - The Indian Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 3 years
KEY POINTS
· The country fall short the adequacy of the financial products that people find access to. The journey from inclusion to integration is not only about making products available and accessible, but also about making them relevant, applicable, and acceptable.
· The first challenge in making products broadly available is bridging the gap between supply and demand of capital.
· For India to overcome these challenges, the existing infrastructure must be adapted to our new purpose, providing easy-to-use, customer-centric experiences.
· It is also critical we recognise that the conventional method of one-size-fits-all is no longer viable.
· Products must be designed and delivered intelligently to meet the customer where they are, and by keeping in mind that they use products to reach their goals.
· This involves tailoring the products to the needs and income profile of the customer, including being cognisant of their environment, geography, and demography.
· Financial service providers are consequently dissuaded from attempting to reach rural, financially excluded groups, and the availability of financial services, therefore, remains an urban privilege.
· By using the power of machine learning and cloud infrastructure, we can significantly lower operating costs while offering customers affordable, bespoke financial products that help them reach their goals.
· Financial education assists people in making sound financial decisions. These are not just challenges of the Indian market, but other economies too.
