Financial Inclusion and Micro and Small Enterprises Growth

Abstract

The persons or firms linked with the either way of financial transaction are known as participants of financial inclusion financially included otherwise financially excluded. The normal way of flow of money is routed through banking system, post office, insurance and FBFC channels. The MSE is financially included with operation of saving account, current account or loan account with banks; financial transaction with other government financial agencies as well as some private sector NBFC. Recent initiatives of Government of India and Indian Banking system have accelerated the performance of financial inclusion through various schemes such as MNREGS, Jandhan, Atal Pension Yojna, MUDRA and so forth. The MUDRA scheme, credit scheme for MSE, credit scheme for KVIC & Coir firm, Kishan credit card, General Credit Card are exclusive financial inclusion scheme for MSE credit. Out of total size of MSEs, less than forty percent units are getting benefits from schedule commercial banks; as on 2017-18 only Rs. 1337 billion credit facilities given by the lending institutions. The paper examines the current status and potential prospect of financial inclusion at given numbers of units and employment.