IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 16, Issue 6. Ver. I (Jun. 2014), PP 52-61 www.iosrjournals.org www.iosrjournals.org 52 | Page Financial Inclusion in India – a Review of Initiatives and Achievements Sonu Garg 1 , Dr. Parul Agarwal 2 , 1 (School of Management, JECRC University, Jaipur, Rajasthan, India) 2 (Director, School of Management, JECRC University, Jaipur, Rajasthan, India) Abstract: Finance has become an essential part of an economy for development of the society as well as economy of nation. For, this purpose a strong financial system is required in not only in under-developed countries and developing countries but also developed countries for sustainable growth. Through Financial inclusion we can achieve equitable and inclusive growth of the nation. Financial inclusion stands for delivery of appropriate financial services at an affordable cost, on timely basis to vulnerable groups such as low income groups and weaker section who lack access to even the most basic banking services. In this paper, the researcher attempts to understand financial inclusion and its importance for overall development of society and Nation’s economy. This study focuses on approaches adopted by various Indian banks towards achieving the ultimate goal of financial inclusion for inclusive growth in India and analyses of past years progress and achievements. The relevant data for this study has been collected with the help of from various Research journals, Articles, reports of RBI, reports of NABARD and online resources. Key words: Financial inclusion, Financial Exclusion, Business correspondents, KCCs, GCCs. I. Introduction: The process of economic growth, especially when it is on high growth line, must attempt to take participation from all sections of society. Lack of access to financial services for small/ marginal farmers and weaker sections of the society has been recognized as a serious threat to economic progress, especially in developing countries. The recent developments in banking technology have transformed banking from the traditional brick- and-mortar infrastructure like staffed branches to a system supplemented by other channels like automated teller machines (ATM), credit/debit cards, online money transaction, internet banking, etc. The moot point, however, is that access to such technology is restricted only to certain segments of the society. Many of research reports and surveys clearly show that large numbers of population does not have an access to basic banking and financial services not only in India but also whole world. This is termed “financial exclusion”. These people, particularly, those living on low incomes, cannot be access mainstream financial services and products such as bank accounts which are used for making payments and keeping money, remittances, affordable credit, insurance and other financial services, etc. II. Objectives of the study: This research paper has four main objectives: 1. To understand the financial exclusion and its extent. 2. To understand the financial inclusion and its importance. 3. To find out the approaches adopted by banks, steps taken by the regulatory bodies and various government initiatives to achieve financial inclusion. 4. To analyze the past years performance and achievements towards reaching out to the unbanked areas under financial inclusion. III. Concept of Financial Exclusion: Before we understand financial inclusion we should have knowledge about financial exclusion. The word of financial exclusion first time used in 1993 by Leyshon and thrift who were concerned about limited access on banking services as a result number of bank branches were closed. In1999, kempson and whyley defined financial exclusion in border sense which refers to those people who have excluded access to mainstream financial services and product till date numbers of analysts added their views to define financial exclusion. „Financial exclusion‟ describes as a situation in which people do not have access to mainstream financial product and services such as banks accounts, credit cards and insurance policies, particularly home insurance, education loan. The effects of financial exclusion can include exclusion from other mainstream services, such as pension or saving schemes, and can also lead to debt and/or cut off from essential utilities.