Role of Public Sector Banks in Financial Inclusion - A case study on West Bengal

Abstract

The banking industry has shown tremendous growth in volume and complexity during the last few decades, the main concern is that the banks have not been able to reach and bring vast segment of the society into its fold of basic banking sector. Financial inclusion is not a new dispensation. Financial inclusion, of late has become one of the major attentions in academic research, public policy, seminars in view of its important role in aiding economic development of the resource poor developing economies. RBI has also taken up different measures to improve the financial inclusiveness of the economy of the country. Rangarajan Committee (2008) on financial inclusion stated that "Financial inclusion may be defined as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost". West-Bengal is one of the most dispersed state in terms of financial inclusion, where only North 24 Parganas and Kolkata showed high levels of inclusiveness (RBI Working Papers). This paper puts emphasis on the present scenario of financial inclusion in the state and outreach of public sector banks (members of SLBC, West-Bengal) in reaching out the different excluded section of the society.