Inclusive financial system allows poor households to save and manage their money in a secure manner, decreases their exposure to economic shocks in the form of drought, floods or any calamity of the kind which affects people dependant on agricultural activities.

An important measure of financial inclusion is to check the number of people who own a bank account. A person holding a bank account is considered to have elementary banking knowledge. Thus a count of the number of bank accounts gives an idea of the percentage of people who are aware of banking and what percentage still needs to be included. However financial inclusion does not end with opening of bank accounts. It has to be a continuous effort.

Realizing the need of financial inclusion, the RBI went ahead with the nationalization of State Bank of India in 1955. Opening up of cooperative banks, regional rural banks and setting up of business correspondent models have been some of the vital tools used by RBI to bring about financial inclusion in India.