Financial Inclusion is considered to be the core objective of many developing nations like India.
Access to safe, easy and affordable credit and other financial services by the poor and weak groups in
deprived areas and lagging sectors is recognized as a pre-condition for accelerating growth and
reducing income disparities and poverty. Financial inclusion ensures the availability of banking
services at an affordable cost to disadvantaged and low-income groups. In India, the basic concept of
financial inclusion is having a savings or current account with any bank. In reality, it includes loans,
insurance services, and much more. Banking sector plays a considerable role in bringing financially
excluded people in to formal financial sector. In India, the primary responsibility of ensuring
financial inclusion lies with the commercial banks subject to guidelines of the central bank (RBI).
However, due to the gigantic size and diversity of population the commercial banks have been taking
the assistance of various social and financial entities like co-operative banks, regional rural banks
(RRBs), self-help groups (SHGs), joint liability groups, and other non-banking finance companies
(NBFCs). Commercial Banks in a country provides an opportunity for the people of that country to
participate in the formal financial system and to utilize financial services of formal financial system.
Larger the number of commercial banks, larger the scope for bringing people in to formal financial
system provided if banks provide suitable financial products and services. Therefore, the commercial
banks should adopt strong and urgent measures to reach the unbanked segment of society and unlock
their savings and investment potentials. The main objective of this paper is to understand the concept
of financial inclusion in Indian context. This paper makes an attempt to assess the role and efficacy of
commercial banks towards promoting financial inclusion in India.
Key Words: Financial Inclusion, Commercial Banks, Role of Commercial Banks