History evolution of Financial inclusion

Policy makers have grapped with the issue of reducing the scope of informal sector since colonial times .

Nicholson report (1895) was the first to highlight the need to establish “LAND BANKS” as an alternative to dominace of money lenders . resulting , the cooperative credit socities Act , 1904 was passed to provide , amongst other things , a legal basis for cooperative credit socities .

Even after 70  years of independence, a large section of Indian population still remain unbanked.This malaise has led generation of FINANCIAL instability and pauperism among the lower income group who do not have access to FINANCIAL products and services.

Historical Perspective  

• 1954 : All-India Rural Credit Survey Committee report -suggested Multi-agency approach for financing the rural and agricultural sector;
• 1963 : Formation of Agricultural Refinance Corporation
• 1969: Nationalization of 14 major Private Banks – The flow of agricultural and rural credit witnessed a rapid increase
• 1972–Mandatory system of Priority Sector Lending (PSL)
• 1975 : Establishment of RRBs
• 1980 : Nationalisation of 6 more private banks