It also paves the way for the central bank’s involvement, in India at least. The concept of financial inclusion as articulated by the RBI caught the imagination of many people, particularly in state governments. It also attracted the attention of the central government, and a Committee on Financial Inclusion under the Chairmanship of Dr C Rangarajan was appointed.
Financial inclusion was formally defined by the Committee, as “the process of ensuring access to financial services and timely and adequate credit where needed to vulnerable groups such as weaker sections and low income groups at affordable cost”. Mrs Usha Thorat was also a member.