Vous êtes sur la page 1sur 6

Research Article Volume 2 Issue 1 2016 E-ISSN: 2395-7964



A Study on Financial Inclusion Initiation by State Bank of India.

Pradnya.P.Meshram,2 Prajakta Yawalkar
MIT College of Engineerings, Centre for Management Studies and Research, Pune.
Maharashtra Institute of Technology, Department of Management Sciences and Research, Pune
E-mail: pradnya.meshram@mitcoe.edu.in, prajakta.yawalkar@mitpune.edu.in

Abstract : In a country like India due to huge population and socio- cultural diversities and also
diverse economic background it is quite difficult to attain inclusive growth across country. And
to improve the economic growth of country, inclusive growth is utmost important. The key
device to attain inclusive growth is financial inclusion. The aim of financial inclusion is
including the excluded in the financial system of the country, and to ensure that their financial &
social security needs are taken care of through appropriate financial service providers. SBI being
the largest and the oldest public sector bank is considered in the study.

Key words: inclusive growth, appropriate financial service providers, SBI, social security.

1. INTRODUCTION OF STATE BANK states that the total assets owned by SBI is of US$388

OF INDIA billion and a widespread of almost 17,000 bank

branches including 190 foreign offices. This clearly

State Bank of India is an Indian public sector makes this as one of the largest banking and financial

bank and financial service company having its major service provider in India by assets. It is also one

presence in country as well in various other nations among the big four banks of India i.e. Bank of

across world-wide. It is primarily a government Baroda, Punjab National Bank and ICICI Bank.

owned corporation and its head quarter is in Mumbai,

Maharashtra. The current statistics of 2013 report


The study being undertaken is

Rangarajan Committee Defined financial
descriptive and exploratory in nature.
inclusion as the process of ensuring access to
financial services and timely and adequate credit Secondary data is collected through
where needed by vulnerable groups such as weaker manuals, annual reports, books, periodicals,
sections and low income groups at an affordable government documents, articles, research
cost." The financial services include - savings, loans,
insurance, credit, payments etc.


The purpose of financial inclusion is to broaden Recent advancements in banking sectors

the availability of financial services to the financially
have transformed the banking sector from
excluded population of the country to open its
traditional brick and mortar infrastructure to
development prospective and in addition, it strives
towards a more inclusive growth of nation by making
technology driven body. Technically sound
financing available to the poor and needful. staffs supplemented with equally efficient
technological systems and process makes the
4. OBJECTIVE OF THE PAPER: banking sector more efficient and customer
To study the role of SBI in financial
friendly. Various efficient customer services
inclusion Initiatives.
like ATM, credit cards, internet banking and

5. REFERENCE PERIOD online money transfer facilities motivated

and encouraged customers towards opting
The reference period for the field investigation for formal financial services. However the
while collecting the primary data is limited to the 12
inclination towards technological offerings
months proceeding to the date of interviews.
by various banks as their service offerings
However, the reference period, while collecting the
secondary data was restricted upto a period of remains restricted to certain segment of the
thirteen years i.e. from 2000 2013, since it was society. There is a divide in the society
thought appropriate to seek the references within this where these offerings have no importance as
period. The data of a decade will help us to gain
they are still deprived of basic banking
proper insight in the study.
facilities which is termed as Financial

Exclusion. This include particularly those any of these services mentioned. But the
segment of population who have low purpose or objective of comprehensive
income, lack preliminary bank account and financial inclusion will provide beneficiary a
are more detached from formal financial holistic set of services encompassing each
services. Financial Inclusion now is more and every service. To enhance and provide
towards including these segments of society. holistic financial inclusion it is very
It can be done through identifying the areas important to understand the extent of
where the percentage of exclusion is more exclusion. With a view of understanding the
and people lacks basic facilities that is same various sources were encouraged to
provided to them as a goal of financial pursue the details of financial exclusion. The
inclusion. extent of financial exclusion as reported by
different sources is mentioned below.
As this aspect may raise a concern on 8. EXTENT OF FINANCIAL
bankability, it became very important to EXCLUSION
make out and identify the steps that could be
implemented to make the claimants As per the report of NSSO, 59th
bankable or creditworthy. This would round in 2012 almost 51.4 percent of farm
necessitate to re-look into the existing households are financially excluded from
financial products and services provided both formal and informal sources. The
through financial inclusion. The prime survey also reports that only 27 percent of
purpose of financial inclusion is to ensure farm households have access to formal
that appropriate financial services are source of credits. If we focus into region
available to every individual enabling them wise database financial exclusion is more
to understand and access those services. The severe in Central, Eastern and North-
basic financial services under financial Eastern regions. Almost 64 percent of the
inclusion schemes includes no frill accounts, population is financially excluded in these
saving products suited to household income, three regions. Analysis of the data provided
small loans, money transfer facilities, by Reserve Bank of India through its Basic
overdraft facilities for personal purpose and statistical return reveals that in terms of
insurance facilities. Financial inclusion in credit critical exclusion is reported in 256
narrow sense can be achieved by providing districts across 17 districts and one Union

territory with a credit gap of almost 95 b. Adopting various measures and
percent. initiatives to incorporate especially
As per the report of Centre for marginal, sub-marginal, poor non-
Monitoring Indian Economy, 2006 there are cultivators households in the formal
11.56 crore land holdings and 5.91 crores banking services.
Kisan Credit Cards have been issued till end c. Adopting better model for maximum
of March 2006 which approximately outreach.
provides a credit coverage of 51 percent by
formal sources. Data from NABARD 9. FINANCIAL INCLUSIONS
highlighted the fact that agricultural loan SCHEMES INITIATED BY SBI
disbursements happened for 3.97 crore
accounts in 2006-07. Thus different sources As a part of financial inclusion
accounts for different numbers of financial initiatives as directed by Reserve Bank of
inclusion and because of non- uniformity in India, every bank either it is public sector or
the data set it becomes difficult to private sector bank has incorporated various
understand the extent and the level of initiatives to promote financial inclusion.
exclusion. Quantifying the extent of The purpose behind adoption of various
exclusion thus created some different financial inclusion schemes is to make
impact. Thus to include the financially people financially independent and help
excluded population various strategies were them to avail the benefits provided by
adopted. The challenge was not that huge in government through various schemes. The
urban area, the challenge was there in rural roadmaps directed by RBI to various banks
areas with weaker section of population in were mostly followed by each and every
the society. bank. Highlighted below were initiatives
incorporated by SBI under Financial
8.1 The steps taken at national level and Inclusion Plan.
envisaged as target to different banks As a part of Financial Inclusion
across country were to: initiative, State Bank of India has set
a. Make effective improvements within up 45,487 Customer Service Points
the existing formal credit system. (CSPs) through association at
National and Regional level.

The Bank offered various Customer Service Points (CSPs).
technological enabled products such This initiative has facilitated in
as savings, flexi RD, Remittance & linking so far 69,749 villages.
Over draft facilities through Business Facilities for depositing loan
Correspondent (BC). repayments at BC outlets have also
As a part of Financial Inclusion been enabled to ensure trouble free
Plans, State Bank of India achieved process.
100 percent coverage in almost Under Direct Benefit Transfer
31,729 villages during the financial Scheme, the bank handled and
year 2014. With this the cumulative opened numerous account which
coverage has gone upto 52,260. increased the penetration of bank in
A total of 11,423 Business extremely rural locations where the
Correspondent outlets have been set percentage of financially excluded
up in Urban & Metro centres to cater was more.
the need of migrant labourers, A sum of 4.46 lac Self Help Group
vendors etc. who migrated from rural credits were linked with the bank
areas and need urgent banking with deployment of Rs.5134 crore
facilities. and holding a market share of 22
To promote the financial inclusion percent.
imitative, State Bank of India has As per RBI guidelines, the Bank has
opened 1.50 crore small accounts set up Financial Literacy Centres
with simplified KYC (Know Your (FLCs) to facilitate financial
Customer) process. inclusion through provision of two
To facilitate hassle free and smooth essentials i.e. Literacy and easy
transaction process, State Bank of access and also to help the customer
India has issued 24 lac ATM Debit to do effective financial planning.
Cards to customers while opening These are few initiatives taken by State
their bank account. Bank of India to promote financial inclusion
State Bank of India has taken across country. Being largest public sector
initiative to link villages to various bank the penetration and coverage of SBI
nearby branches through various across country is huge. The chapter over this

highlighted very elaborately every aspects of 3. Ramkumar (2007), Financial
financial inclusion starting from an initiative Inclusion and Financial Literacy:
to spread and reach of State Bank of India SBI Initiatives, CAB
across country as well as in Pune, 4. Report of the Committee on
Maharashtra. The next section of the chapter Financial Inclusion in India
shows the initiatives and coverage of SBI in (Chairman: C. Rangarajan) (2008),
Maharashtra as well as in Pune region of Government of India
Maharashtra as a part of financial inclusion 5. Parameshwara,Dr.ARaghurama:
drive. Role of Banks in Financial Inclusion,
CONCLUSION: 6. Journal of Applied Research,
The purpose of this study is to Volume: 3, Issue 6,June 2013.
understand and analyze the initiatives taken
by State of India. The researcher broadly
presented a view on the concept and
emergence of financial inclusion in India
subsequently progressing with the
perspective of financial inclusion. Further
the research also highlighted the financial
inclusion initiatives undertaken by State
Bank of India in India. A comprehensive
exercise for understanding and validating the
effectiveness of financial inclusion of SBI
on the basis of the secondary data.

1. Usha Thorat,(2007),Financial
Inclusion The Indian experience
2. Thingalaya.N.K (2008), Financial
Inclusion Reaching the unreached in
Industrial Economist, July, Chennai.