Intro is not good. It is too short. Introduction should have atleast 10-15% of the whole content.
In intro you can write definition given by World Bank or RBI. Refer model answer for it.
Discuss the concept of Financial Inclusion and its importance in Economic Development.
Financial Inclusion refers to universal access to a wide range of financial services at a reasonable cost. These include not
only banking products but also other financial services such as insurance and equity products.
Importance of Financial Inclusion in the Economic Development:
Financial Inclusion has been identified as an enabler for 7 of the 17 Sustainable Development Goals.
It is a key enabler to reduce extreme poverty and boost shared prosperity.
Develop savings: Financial inclusion broadens the resource base of the financial system by developing a culture of
savings among large segments of rural population and palys its won role in the process of economic development.
It also mitigates the exploitation of vulnerable sections by the usurious money lenders by facilitating easy access to
formal credit.
Development: financial inclusion would result in a higher savings, decrease in income inequality and poverty, increase in
employment opportunities.
Growth: greater access to formal credit would promote entrepreneurship in country.
Women empowerment: financial inclusion empowers women by involving them in household finances, promoting self-
reliance and financial independence, and boosting financial literacy and promote gender equality.
Additionally, banks offer women-specific benefits like lower interest rates and better savings incentives.
Very generic answer. You have Refer Score Booster
Advantages of Financial Inclusion not mentioned any example or Box for more update
Reduce the gap between rich and poor government initiative. on this.
Boot the financial condition and standards of life of the poor and disadvantaged population.
Help in implementation of social security schemes
You can also write different intiatives taken by
Lower the transaction cost for daily economic activity.
Government and RBI instead of writing advantages.
Enables creation of economic buffers for exigencies
Better monitoring and regulation of financial transaction using digital technology
It helps the government plug leakage in public subsidies and welfare programmes as it can directly transfer the
subsidy amount into the account of the beneficiary.
Poor and downtrodden are encouraged to invest in various financial products and can borrow from formal
financial channels.
It increase the amount of available savings and the rate of capital formation, thereby allowing tapping of new
business opportunities.
Financial access facilitates day to day living, and helps families and businesses plan for everything from long-term goals to
unexpected emergencies. As account holders, people are more likely to use other financial services, such as credit and
insurance, to start and expand businesses, invest in education or health, manage risk and weather financial shocks, which
can improve the overall quality of their lives.
Very vague point. It is not necessary. Conclusion is good. You have to work
on your introduction and body of the
answer. There is a lot of scope for
improvement. if you write regularly, it
will be better and you can see
improvement. Just you have to
incorporate the suggestions.
