The growing importance of consumer finance for financial inclusion in India
Ray, Saon; Miglani, Smita; Paul, Sandeep | December 2018
Abstract
Financial inclusion or access to financial services is a major development goal for all nations across the globe. The concept has a multitude of dimensions from payments and savings accounts, credit, insurance and pensions and securities market. Ensuring quality access to formal financial services has always been a challenging task. Despite being a prime policy agenda for decades, the goal of universal financial inclusion is yet to be achieved in India. The Indian financial inclusion story so far was led by commercial banks and MFIs. While acknowledging the importance of access to credit for productive purposes, a total integration with financial market also means access to services like insurance and consumption loans. This paper examines the role of consumer finance, a high growth segment of the Indian financial sector in promoting financial inclusion. Consumer finance involves granting credit to consumers to enable them to possess goods for everyday use. While the Indian financial sector is changing rapidly, a large number of households still rely on informal sources for unforeseen expenditure. The paper presents results of a survey of consumer perception on the role of consumer credit to financial inclusion.
Citation
Ray, Saon; Miglani, Smita; Paul, Sandeep. 2018. The growing importance of consumer finance for financial inclusion in India. © Indian Council for Research on International Economic Relations. http://hdl.handle.net/11540/9399.Keywords
Financial Stability
Financial Management System
Financial Restructuring
Capital Market Development
Market Development
Economics
Erosion
International Economics
Macroeconomic
Macroeconomic Analysis
Performance Evaluation
Impact Evaluation
Foreign and Domestic Financing
Foreign Direct Investment
International Financial Market
Multilateral Financial Institutions
Economic Recession
Market
Crisis
Economic indicators
Growth models
Gross domestic product
Macroeconomics
Economic forecast
Business Financing
Investment Requirements
Business recessions
Multilateral development banks
Regulatory reform
Capital
Exports
Economic development projects
Economic policy
Economic forecasting
Investment Requirements
Banks
International banks and banking
Capital movements
Central banks and banking
Bills of exchange
Swaps
Banks and banking
Financial crisis
Credit control
Credit allocation
Capital market
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