An Aadhaar-based Mobile Money Framework for Financial Inclusion in India

Abstract

Today India’s GDP is witnessing growth of the order of 7.8%1 per year. This rapid growth and transformation has not only evoked a sense of optimism but also a sense of hysteria due to the widening disparities between the rich and the poor. Many developing nations are grappling with the problem2 of non inclusive growth and hence the term “inclusive growth” has now become the new policy mantra for India. By the term inclusive growth, we essentially mean a phenomenon of sustained economic growth across broad sectors to reduce poverty effectively by way of creating productive economic opportunities for the poor and vulnerable sections of the society3. Access to low cost finance, especially by the rural and the unbanked is a prerequisite for productive employment, economic growth, poverty alleviation and social cohesion. Quoting financial Inclusion in the words of Dr. C.Rangarajan Committee