Financial Inclusion in Jammu & Kashmir : A Study on Banker’s Initiatives

The World economic order witnessed dramatic changes Post World War II and India being a newly Independent Country was faced with more complex issues of illiteracy, poverty, malnutrition, sustainability and underdevelopment; and the prime focus of Government remained Development for Sustainability and Inclusive Growth. In order to combat poverty and to achieve uniform growth all over, various measures have been taken from time to time which include building and strengthening rural cooperative sector, nationalisation and privatisation and expansion of financial sector.Easy Access to sources of finance is believed to be an important tool to poverty alleviation and inclusive growth. Following the recommendation of Khan Commission-2004, various reformative measures have been taken by Reserve Bank of India and Government of India. Most of the recommendations of the Khan Commission were incorporated into the mid-term review (2005-06) of Reserve Bank of India. In this report, Banks were exhorted upon to take up various strategies in order to achieve Greater Financial Inclusion. Banks throughout the Country scaled up their initiatives to achieve their targets for Financial Inclusion and have succeeded in doing so to a large extent. However, the State of Jammu and Kashmir lags behind other states in its vital Financial Inclusion Indicators; Credit-Deposit Ratio at a meagre 35.71 against the benchmark 60, and Financial Exclusion to the extent of 68% which is highest in the Northern Region. It is in this direction that the present study has been carried out in order to look into the various initiatives taken up by Bankers in the State of Jammu and Kashmir. The present paper also attempts to look into the progress of financial inclusion in the State