OPINION: Products meant for the affluent, urban market will not work for the financially excluded in India
Thursday, October 9, 2014
Stripped-down versions of products meant for the affluent, urban Indian will not work for the financially excluded
Financial inclusion is not just about access to financial products — both savings and borrowings. It also about safe, easy and low-cost access to a cash-flow management system, and that includes a payment system that allows you to move money around safely and at a low cost.
Financial inclusion has been an important developmental agenda for India. Though financial inclusion is ‘necessary’, it is definitely not a ‘sufficient’ condition for economic growth. It’s like what water does to stimulate germination; but for healthy growth of a seedling, fertile soil, air and sunlight are also important. Lack of even one of these factors will lead to stunted growth.