Rural India accounts for roughly 70% of the population located in 6, 37,000 villages across the country. Out of the 89.30 million farmer households 45.9 million do not have access to credit either from the institutional or non institutional sources (NSSO 2008). Though the banking industry has shown tremendous growth during the last few decades in all areas relating to financial viability, profitability and competiveness, there are concerns that banks have not been able to include certain segments of the population, especially the under-privileged sections of society, into the fold of basic banking services. The financially excluded sections of society also include the urban slum dwellers and migrant workers in urban areas. This has been an area of concern and focus of the Government and Reserve Bank of India (RBI).

Several initiatives have been underway to empower the marginalized sections through awareness and education and access to basic banking services such as savings, credit and insurance. However data collated through various surveys indicate that for every 100 adult persons there are only 17 credit accounts and 54 savings accounts with all the financial institutions put together (June 2007), thereby highlighting the need for more concerted efforts from the Government, Regulators and the Banks towards ensuring financial inclusion.

The term 'Financial inclusion' (FI) is defined as including the excluded sections of disadvantaged and low income groups into the formal financial sectors by delivery of banking services at an affordable cost. The services offered under FI constitute 'no frills' accounts, access to savings products, providing easy and right quantum of credit at affordable interest rates, insurance etc.

Our bank has drawn a three year plan to achieve Financial Inclusion objectives and has taken up several steps in this regard. The highlights of these are: