Credit can be penetrated into rural India through appropriate banking channels. The Indian banking industry has shown tremendous growth in the last few decades. But despite such growth, the banks have been unable to reach a vast segment of the Indian population. This void ultimately led to the emergence of financial inclusion.

Financial inclusion refers to the strategy adopted to make banking activities and its benefits reach the unbanked areas. It is a drive to bring the unprivileged people at par with the mainstream.

Financial inclusion does not restrict itself to credit. It includes financial awareness, knowledge about banks and banking channels, facilities provided by banks and the advantages of using the banking route. It involves educating people financially; making them financially literate.

The drive for financial inclusion has been started in India by the monetary regulator, Reserve Bank of India.

People residing in rural areas where banking facilities have not yet touched foot are unaware of the benefits of financial services. Finance is an integral part of every life. Managing the hard earned money so that it grows to yield more money is very important. But people who are financially unaware often fall prey in the hands of greedy money lenders. These money lenders take undue advantage of the ignorant people and they fall in debt trap that lasts for not only their life but for generations to come.