Study Of Financial Inclusion Policies and Their Impact on Rural Development

Abstract

In a developing economy, rural development is closely connected to financial inclusion since in such economies, access to financial services is the main contributor to economic development and reduction of poverty. In this context, we discuss the influence of the policies taken for financial inclusion in the rural development, in particular in that what extension of the banking services, the digital finance and facilities Microcredit have contributed to the generation of income, the development of entrepreneurship and off of social welfare lift-off in rural areas. The importance of the paper is to assess whether government initiatives such as subsidized loan, mobile bank etc. help the people to have better access to capital so that in turn their employability and quality of living increase. The paper concludes by identified the above constraints the success of such policies in a rural setting if there is no adequate infrastructure, low level of financial literacy and social cultural barriers against financial inclusion. This research mostly begins by understanding the long-term outcomes of inclusive financial systems through case studies and empirical evidence from different regions and then offers recommendations to policy makers on the improvement of the implementation and design of financial inclusion strategies. It was demonstrated that though there has been advancement, broadening of financial inclusion to effectuate rural development fully, requires investments in digital infrastructures, education, and the targeted financial products.