Thread on Department of Financial Inclusion and Banking Technology

It is the most common insight to see development in the wealthy sectors of society. But, what about the sections that are not up to perfection on the standards of the finance? These sections are also in the need of resources that will help them make their lives more favourable. And to support that notion is the main aim of the Department of Financial Inclusion and Banking Technology. This program supports the development of people of the weaker classes of society to become financially stable. 

Genesis

Financial inclusion is the process by which financial support is provided to the vulnerable groups of society. This includes financial services and the credits from time to time. The vulnerable groups that are being provided support include weaker groups in society as well as the low-income groups. It aims at keeping the cost of these services to a bare minimum. Its main aim is to make all these financial services accessible to all the groups of society. 

The committee on Financial Inclusion is being chaired by the Ex-Governor of the Reserve Bank of India, Dr C Rangarajan, right now. This committee mainly holds control over two types of funds. These funds are the financial inclusion fund and the financial inclusion technology fund.  This committee promotes and brings new initiatives that will help in the credit grant to the poor and the vulnerable groups of society. 

Since 2015, both the FIF and the FITF have been merged to form the Financial Inclusion Fund (FIF). This association provides the infrastructure to the various groups of a country. It helps in spreading awareness about the financial sector among these groups and provides them with adequate knowledge regarding these elements. 

Corpus and Sources of Funds

The Rural Infrastructure Development Fund (RIDF) is a fund that provides support to the programs that are headed by the vulnerable groups of society. This group specifically overlooks the development of infrastructure in rural areas. This includes structural as well as educational advancements. Under this fund, the related groups to this fund are provided with the knowledge that is essential for them to be a part of the financial sector and contribute to it to the best of their abilities. 

Since the merging of the Financial Inclusion Fund, this fund has been under the administration of the reconstituted Advisory Board constituted by GOI and will be maintained by NABARD. The GOI refers to the Government of India. And, it happens to be the most powerful entity in the support of this program. This program aims to bring financial stability to the weaker sections of society. It aims to empower those people with the power of knowledge regarding the financial sector and help them sustain a better life. 

Many other funding programs that are headed by the Government of India are also major contributors to this fund. Those funds invest in this one per the extent to which they rely on each other. This helps in creating balance in the financial sector. 

Governance

The Department of Financial Inclusion and Banking Technology has an advisory body that leads and makes all decisions that are related to the department. Various funds and government associations happen to be the art of this advisory body. This advisory body is headed by the Government of India. 

The Financial Inclusion Fund and the Financial Inclusion Technology Fund under the guidance of NABARD are also major contributors to this department. These funds ensure the backing of the Indian Government to this department and promote their activities in full accordance with the Government of India.

Under the supervision of the government of India, this department provides knowledge, infrastructure, and technology to the weaker sections of the society and promotes their development to enhance their financial standing. 

Conclusion

The main aim of the Department of Financial Inclusion and Banking Technology is to divide financial stability among the lower classes of society. To make that presumption turn into reality, this program empowers them with the infrastructure, funding and knowledge that will be crucial to them in the long run. By entrusting these people with these elements, it aims to make these people self-dependent and be able to sustain a better quality of life for themselves.