MICRO FINANCE AND FINANCIAL INCLUSION

Abstract

Pushpalatha.V Assistant Professor in Economics Sree Narayana College, Nattika Abstract Financial inclusion is an important ingredient for social and economic progress in developing countries. micro level financial inclusion helps poor households and small businesses to generate income, build assets, smooth consumption and better manage risks. An inclusive financial system also helps governments to better execute social policy in other priority areas such as education and health for example through more targeted financial transfers. Indian rural poor women are deprived of rural institutional credit because of high cost of administering small loans and lending risk involved. Micro-finance has been adopted to overcome this problem. This study analyses the role of micro finance in financial inclusion.