A Study On Banker’s Perception And Challenges Faced In Implementation Of FIPs In Rural Areas Of Medchal And Ranga Reddy Districts.

Abstract

Financial inclusion is increasingly being recognized as a key driver of economic growth and poverty alleviation the world over. The Government and RBI come up with National Strategy for Financial Inclusion (NSFI: 2019-24) policy. This policy aims to provide access to formal financial services in an affordable manner, broadening & deepening financial inclusion and promoting financial literacy & consumer protection to poor.RBI closely measure and monitor financial inclusion policy and continuously framing the long term goals involving all the stakeholders. For this purpose, RBI appoints all schedule commercial banks to implement financial inclusion programs and schemes in rural, urban and metropolitan cities.In this scenario, RBI is regularly monitoring and discussing with banks on problems faced by bankers and their challenges, opportunities in implementation of FIPs especially in rural areas. Since 2005, RBI has been making concerned efforts in tackling several issues related to financial inclusion. In spite of several measures such as establishment of BC-BFs, a KYC norm, Electronic Transfer, BSBDA, KCC, PMJDY and MNREGS there is a deviation in implementation of FIPs in urban and rural population areas.The rural - urban divide so prominent in our country has serious consequences on financial inclusion and there are several issues that could be addressed for proper implementation of financial inclusion. The present paper is a sincere attempt in this direction and aims to measure the banker’s perception and issues & challenges faced in implanting FIPs especially in rural areas. The results show that bankers face three predominant challenges in implementation of FIPs in rural areas. They are Unorganized Sector Domination Regulatory and Numerous Product offering and Infrastructure and Financial literacy challenges in rural areas.