In rural area financial services is still unreachable in most of the developing nation. It is assessed that the financial exclusion is one of the reason for world wide poverty of a section of the disadvantaged people.
Financial inclusion in India: If we analyse the reason of disparities in India. Then it becomes evident that financial exclusion of certain group of people is one of the factors of their low income and poverty. Poor people remained poor and became pauper as they didn't get basic financial services at an affordable cost. So they had been excluded from banking system for a long time and they have been trapped somehow by money lender by lending few and forced to pay interest ; which was used to be many times of the principal. Thus they are thrown in the vicious circle of poverty. The low-income households are excluded from financial inclusion because of red tappism activity of bank employ.The bank staffs were habituated to restrict unbanked people by demanding more paper works. It kept these excluded people in fear and hesitation.
Government of India had been trying to include the excluded for many years, but partly succeeded to get strong solutions. In this connection India started Grameen Bank (Grameen means rural) in 1976 launched by Mohammad Younus Khan. In October1983 this project was transferred into an independent bank by government legislation. At present time India has 57 grameen banks with more than 17,000 branches across the country.