Financial Inclusion

Introduction

1. Microfinance refers to providing financial services such as credit, savings, and insurance to low-income individuals or groups who lack access to traditional banking systems.
2. Self-Help Groups (SHGs) are small, informal groups of people who come together to address financial needs through collective savings and mutual lending.
3. Both play a crucial role in financial inclusion and empowering marginalized communities, especially in rural areas.

Key Features of Microfinance

Introduction to Digital Payment Systems

1. Digital payment systems are methods of transferring money electronically without physical exchange of cash or cheques.
2. They are critical to achieving financial inclusion and reducing dependency on cash transactions.
3. In India, key initiatives like Unified Payments Interface (UPI) and Bharat Interface for Money (BHIM) have revolutionized digital payments.

Unified Payments Interface (UPI)

1. UPI is a real-time payment sy

Introduction to Jan Dhan Yojana

1. The Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched on August 28, 2014, by the Government of India.
2. It aims to provide universal access to banking facilities and promote financial inclusion for all sections of society.
3. Described as the world's largest financial inclusion initiative.

Objectives of Jan Dhan Yojana

1. Provide access to basic banking services such as savings accounts, deposits, and withdrawal