This book addresses the gaps in the present institutional structure of
inclusive finance framework in India. It provides a comprehensive review
of the role of banks in financial inclusion policy and micro-finance
landscape in India at present. It identifies the key issues within the
banking system which prove to be obstacles in the way of achieving
financial inclusion and sustainable growth. The book conceptualizes
inclusive banking, delves into the theoretical foundations thereof and
suggests an institutional framework to avoid overlapping of their
functions in order to ensure profitability. It reviews the existing
market structure and competition in the inclusive finance arena while
considering the role of banks, micro-finance institutions and SHGs in
financing the poor.
The book proposes a distinct change to the existing business model,
examines the bank business model for inclusion and how the banks can and
should treat the micro lending clientele as their core client base to
counter the issues of profitability and competition in today's banking
sector. It also discusses some of the latest initiatives in inclusive
finance and the importance of entrepreneurship development experiments
in India and their efficacy in comparison with the micro-lending model.