Branchless
Banking in India enables the financial inclusion of Indian rural and semi-rural
and poor urban areas and the benefits are:
ÿEconomical Support to the Poor
An
opportunity for the lowest strata of society to save money to overcome financial
difficulties which they encounter often and makes them vulnerable. Thus it
provides them a platform to borrow money, receive money and also save their
money securely and confidently in a regulated and reliable banking environment.
ÿ Credit Support
Credit
was traditionally sourced from informal channels which made the poor dependant
and vulnerable. With financial inclusion there is an opportunity for the poor
to avail of credit at reasonable terms to fund their aspirations and foster
entrepreneurship.
ÿ Direct Payment
Direct
Payment to the Beneficiary Banking allows a safe and reliable payment channel
for Public subsidies and welfare programs offered by the GOI for the poor. With
financial inclusion the money is delivered directly to the beneficiary from
government subsidies and welfare programs. Thus leakage in the system is
reduced and the money reaches the poor people who are its recipients without
pilferage. Government of India has already started direct cash transfers to the
beneficiaries of various government schemes and this has been well received by
the recipients.
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