Financial Inclusion and role of banks in rural development

India is one of the fastest growing economies in the world. We have 1.2 billion of population which creates a potential marketplace for national and multinational companies. It is important to note that the growth has not been uniform. In the year 2012 Agriculture contributed to only 13.72% to our GDP. Agriculture in our country employs almost 65% of workforce and is a prime occupation on rural workforce.

The urban economic development is at a good speed but development in rural areas has been sluggish. Nevertheless, it is gaining pace as our country is going under reforms in rural sector in rural banking specifically. The term Financial Inclusion is gaining a nation-wide scope because it is getting much needed support from apex bodies like RBI in recent years. The underprivileged sections need financial support in the form of a savings account, loan facilities with lower interest rates, insurance like services. These legal services by commercial banks keep the vulnerable away from illegal money-lenders. These money-lenders exploit the already poor and grief struck farmers. There is an urgent need to abolish these informal financial markets. To fulfil this objective, banks should stride into rural areas which are unaware and backward and teach them financial activities.

Our villages lack infrastructure facilities like road, internet, electricity, water reservoirs etc. And banks require resources like these right from first step of construction of offices to computer based services. Out of all these requirements construction of concrete roads gives a major fillip to rural growth. It connects the villages to major cities where banks, hospitals etc. are available.

Activities like farm mechanization, ware housing, agro-based industries, retail banking and education loans will increase the level of money management. It will prove to be a harbinger of economic stability in the untapped areas of India. The provision of ATM’s in rural areas is a very helpful tool in the exact same way urban people get the benefits of it. To increase the literacy rate, Education loans should be done rigorous marketing, acting on the roots of problem.

Today around 100 million rural households are away from the banking system. If tapped, it will generate almost two times the existing business of rural banks.  Banks need to create “High Volume – Low Margin” to cater to the needs of rural households.

The objective of financial inclusion creates a cycle of important processes. These are infrastructure development, increase in facilities, decrease in social evils like bonded labour, decrease of informal money-lenders, growth and awareness among the vulnerable and finally increase contribution of 70% of population in economy.

India Needs Industry Academia Interface to Develop Enterprising Skills in Our Youth

A common trend is seen these days that graduates when land a job for themselves go through a training of 4-6 months. This training is job-centric to enhance the employ’s capabilities as per company’s needs. How convenient would it have been, if before getting placed, during the degree curriculum itself, students got industry internship and work experience? This would be very beneficial if the industry professional themselves would come and train students under a project.

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Employees with enterprise and entrepreneurial skills are an asset to a company because they spot gaps in the market, innovate and are commercially minded. A sound business sense only comes when during course curriculum industry interface is provided by the college by culminating industry internship into academics. Due to this the students will get aware of corporate culture. They will get exposed to corporate essential thinking. They will not only be studying topics in theory but they will apply that knowledge too. In this way the course curriculum will also be at par with current trends in market. They will be able to train students as per company requirements. Surely after such interfaces there will be value addition for every student. There scope of career and thinking will widen which will be useful directly to country’s growth. When a student will carry with him that exposure, then getting a job in this competitive world will become easy. Not only the employ is a beneficiary here but the employers are also at an advantage, as they do not have to invest in the training required for naïve employees.

The world is moving at a cheetah’s pace and it is time that we understand the importance of market experts who can contribute to their respective fields. Just like a doctor who does not operate a patient before practicing on sample bodies for almost 100 or more times and only observes and assists operations in the initial days. Any graduate like Engineers, Architects etc should be given a curriculum with well-planned industry interface so as to gear up for potential work and career prospects in the real world.

Positive Discrimination has Hampered Social Integrity in India

An attempt to create social equality has lead to positive discrimination in India. The very noble act of giving preference to backward classes and women in our country has both positive and negative impacts. They all have one objective, i.e. social integrity. A society free from caste based hierarchy and the unjust which follows it. If this discrimination was still prevalent then there would have been two classes in our country. One with all the facilities and provisions and the other with poverty and lower strata of living. This problem would have lead to revolts by backwards classes which in turn would have destroyed peace and harmony. Also these backward classes contribute as good as any upper caste class.

But the provisions which they are given when put under a scanner give a different picture altogether. Do they reach the target beneficiaries? Are the reserved poor rural area people aware of any such provision? How has it helped the deprived and to what extent has their condition improved? Does it give them an equal status or it has legally claimed them as deprived? These provisions are often disregarded by upper castes. This creates an unwanted or unintended gap between the upper and lower caste again.

Gandhiji always believed that deprived classes and women should be encouraged and strongly held as contributors to economy. When the dominant or the upper classes accepted the reservation provision they had their own reasons. Due to the building pressure and wish to remain at power by encashing deprived classe's votes. However, provisions of reserved seats in Lok Sabha was introduced. But since the abolition on double-member policy in Lok Sabha elections the number of Scheduled castes have reduced in the parliament. Although many who have secured powerful positions have not done any remarkable task of tackling issues. They have been inefficient. After repeated media requests and intellectual's request the Protection of Civil Rights was enacted in 1976. The bill was lying with the Parliament for six years. This shows the callousness of ruling party and backward class MP's. Even Scheduled class MP's, MLA's and CM's have not done much to protect the rights of community that they represent.

Politics plays a vital role in shaping the socio-economic culture. Some Scheduled Caste candidate may stand for election and join a political party where he/she is under one boss who makes the SC candidate inept in taking important stand on certain issues which the candidate was expected to take. States like Tamil Nadu still has all pervasive caste discrimination having no effect of any Act.

When a general candidate does not acquire a seat in a college with 80% whereas an SC candidate acquires the seat at 65%, an alarming sense of unjust arises in that general caste student. The student with the SC caste certificate who is aware does not even feel proud rather feels low and finds himself still lying beneath the layers of discrimination. This positive discrimination has not bonded but has further fragmented the society; it will have dire consequences in future if we do not reform and re-plan the noble provisions for deprived.

Sustainable Development is Next to Impossible Task in India

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It has always been proven that an environment where there is stable administration, social equality, inclusive growth and great opportunities is the best for sustainable development. In fact these are the prerequisites of any sustainable development plan. These qualifications are a distant dream for India.

India is at a stage where it needs to identify the requirements and ensure its availability. These requirements are in the form of resources like fuel, water etc. which today get absorbed at a faster rate pertaining to growing population. Population explosion is the proof of failure in reforms in education and social sector. The country's wealth drains in the midst of expenditure on policies which lack vision and perseverance. The lack of scrutiny on education sector has lead to educated but unskilled manpower, graduated but unaware people. The interference of regional parties in country's politics has lead to an indecisive parliament. Such pot-pouri of parties are of little help.

The country's leaders and citizens follow the democratic way of elections wherein an MLA/MP requires lesser qualifications than the IAS and IPS officer working under him. The minister shows little or no performance to take that apex position as compared to the IAS officer who goes through the rigorous exams and training. This democratic system of India is more of a quantitative rather than a qualitative approach.

There are too many parties, but very few target actual issues. There are numerous policies like Mid-day meal, National Food Security Bill, MGNREGA, JNNURM etc but very few reach their objectives. Recent reports show us negative feedback and reports corruption at all areas. Thousands of projects are stuck in the arduous processes of our system. There are multiple heads for a process and none take responsibility. The incomplete or not started projects grow ten fold in their budget when delayed by 10-15 or more years.

The uneven development,population growth, inept policies and rampant politically favorable decisions hampers blooming of a stable administration. And stable government is the first requirement of sustainable development. An unstable administration also results in neglected socially backward classes which in turn widens the gap between rich and poor, haves and have not.

To change the political system of governance is next to impossible task because then it will mean changing  our very own constitution's instructions. This is only possible when a robust plan comes to action which is again a distant dream for India where a parliament session in the Parliament house in Delhi is synonymous to a fish market and is the most watched comedy video on YouTube.