Financial Inclusion And Small Finance Banks:- A Case Study

Abstract

Growth of Indian economy is depending on the growth of rural India. India has the second highest number of unbanked population in the world, followed by China. Financial Inclusion is the new pattern set by RBI to play a role to eradicate poverty in the developing country like India. There are large numbers of commercial banks in India but theyre failed to provide financial inclusion so that the bank that is aware about the rural population and its cause is small finance bank. And in November 27, 2014 RBI issued guidelines for approval of small finance banks in India (Reserve Bank of India, 2015). There are ten small finance institutions in India. The aim behind the small finance banks is to provide financial access to the lower income people at an affordable cost and financial inclusion in the un-served or disadvantage sections of the society to improve their standard of living. This Paper aims at the role of small finance bank in unbanked society and tries to measure challenges faced by them.  The study conducted in various small finance bank of different branches in different areas of India. This study mainly focuses on the qualitative approach and mixed data i.e. through mailed questionnaire and telephonic interview with different employers employed under small finance bank and secondary data was mainly collected from Journals, websites and government guidelines.