‘Lack of consistent income key reason for most people being out of financial inclusion’

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Most people are still out of financial inclusion due to the lack of consistent income and there is a need to spread financial awareness and generate income for them to include more people in the formal financial system, Nabard Chief General Manager Goverdhan Rawat said on Wednesday.

Rawat was speaking at a financial inclusion program meet held in Aurangabad on Wednesday.

Sixteen vans are given by the National Bank for Agriculture and Rural Development (Nabard) to spread awareness among people, which will display schemes of the government and facilities of banks. Out of these 16, four were inaugurated in Aurangabad by Union Minister of State for Finance Bhagwat Karad.

Rawat said, “We need to spread awareness among people to increase participation and take financial inclusion to 100 per cent. We have conducted around 7,000 camps this year in Maharashtra. Rural and co-operative banks have well assisted in this. We have also handed over different tools to banks for the same.” On why most people are still outside the financial inclusion, Rawat said, “one reason for financial exclusion of people is that they don’t have a regular or consistent income. Until they don’t have such an income, they will not think of insurance products or investments.” He added that there should be efforts to generate income for them through initiatives so that they become financially included.

“We are trying to stop the rainwater by developing watersheds through scientific methods in the state. Such 43 projects are currently ongoing in the state and our major focus is on Marathwada. We are also trying to give income to people who are far away through tribal development fund,” Rawat said.

He added that financial inclusion can be taken up by including self-help groups and farmer producing companies.”Bank branches should try to connect 10-15 new customers through camps every month.”