1.1 PREAMBLE

               The concept of financial inclusion can be traced back to the year 1904 when co-operative movement took place in India. It gained momentum in 1969 when 14 major commercial banks of the country were nationalized and lead bank scheme was introduced shortly thereafter. Branches were opened in large numbers across the country and even in the areas which were hither to being neglected. Even after all these measures a sizable portion of population of the country could not be brought under the fold of banking system.

               Financial inclusion is the availability of banking services at an affordable cost to disadvantaged and Low-income groups. In India, the basic concept of financial inclusion is having a Savings or Current Account with any bank. In reality, it includes loans, insurance services, and much more.

               The Indian banking system will have to deliver on the plan for financial inclusion. The system, which demonstrated its resilience in the face of the recent global financial crisis, should adopt strong and urgent measures to reach the unbanked segment of society and unlock their savings and investment potentials.