Q.Analyse the key objectives of financial inclusion by giving four points.

Two independent answers below — key objectives of financial inclusion, OR the microeconomic trends of financial inclusion specifically in Manipur.

Part 1 — Four key objectives of financial inclusion:

1. Universal access to formal financial services: To ensure that every individual and household, especially in rural, remote, and low-income sections, has access to basic banking services — savings accounts, credit, insurance, and payment/remittance facilities — at an affordable cost.

2. Promoting savings habit and capital formation: To encourage even small and irregular savers to deposit their surplus funds in formal institutions (rather than keeping idle cash), which in turn mobilises these small savings into a pool of capital available for productive investment in the economy.

3. Providing affordable credit and reducing dependence on informal sources: To free poor and vulnerable households from dependence on exploitative informal lenders/moneylenders who charge very high interest rates, by giving them access to timely, adequate, and low-cost credit from banks and microfinance institutions.

4. Inclusive and sustainable economic growth: To reduce poverty and income inequality by bringing financially excluded sections into the economic mainstream, enabling them to participate in and benefit from overall economic growth, and improving their resilience to financial shocks.

OR

Part 2 — Microeconomic trends of financial inclusion in Manipur:

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