Financial Inclusion: Bringing unbanked into banking world

Financial inclusion of bringing the unbanked into the banking world has been an ongoing effort of the Union government and Reserve Bank of India (RBI). Realizing its importance for fueling economic growth, the RBI way back in 2004 formed a committee to examine issues relating to rural credit and microfinance. This committee headed by HR Khan gave its report in July 2005. Among the various recommendations, the Khan committee as a first step advised banks to allow people in rural areas to open No-Frill bank accounts.