How can financial inclusion contribute to economic growth,mainly education?
Financial inclusion refers to provision of services at prices that will make it affordable for a larger section of society. An example is increasing the availability of bank accounts and banking services to a larger portion of society, instead of keeping the service charges high, which will limit these to a certain (more affluent) section of society. Financial inclusion is the opposite of financial exclusion, where services are so priced so as to be exclusive to certain parts of society.
Financial inclusion is crucial to economic growth, especially in the context of developing and underdeveloped economies. It brings a much larger section of citizens into the mainstream and enables their contribution to national growth. An example is the provision of bank accounts to all the adults in India, under a recent scheme. This bank account will be used for providing subsidies to the citizens and will help them save and contribute to the nation's growth.
Financial inclusion in education will bring more children to school and impart education to a larger section of society. A larger educated population base is crucial to a nation's growth due to the skills they possess, as compared to illiterate people. Also, it is much easier to train people who have some education level as compared to those who have none. Thus, financial inclusion in education is essential to economic growth.