28 September, 2020

Illusion Of Embrace

Despite lofty objectives, the reality of financial inclusion remains dismal

Dinesh Parab
Illusion Of Embrace

The Missing Link

  • MFIs: Apart from issues of interest rates and recovery of credit, inadequate handholding to ensure lending for livelihood
  • Banking: Overemphasis on opening of accounts and not usage; lending rather than savings becomes the key aspect
  • Insurance: Stumped by the challenge of selling small-premium and simple products, distributing and servicing them
  • Pensions: Consumers finding it difficult to understand products; issues are duration of the scheme, sustainability and delivery of pension
  • Markets, MFs: Expanding involvement with stockmarkets is completely non-existent


Despite all those schemes, conferences and acronyms, the noble aim of financial inclusion—a catchy buzzword for taking financial services to those who need them the most—is faltering. It’s not just microfinance lending that...



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