The goverment is going to review the progress of the financial inclusion plan of banks at a meeting to be held on December 15.

The apex bank has already set the target for banks to attain complete financial inclusion in the country by March 2012 and is now going to see how much effectively have banks worked towards meeting the target.

Barriers in demand and supply both exist in the path of this project. While high amount of illiteracy prevailing in the country acts as a barrier in the demand side, and lack of penetration on the part of banks acts as barrier in supply side.

The primary experience with this project has showed that lack of basic knowledge about banking has actually made it even more difficult for intermediaries to reach the target.

Also adding to the cost of reaching out to rural areas is the lack of basic physical and social infrastructure, including roads and communication.