Short Notes on Inclusive Banking

Inclusive banking is an attempt aimed at taking the banking services to customers who hitherto did not benefit from banking system as a whole and were dependent on non-banking and non-formal financing options. In other words, inclusive banking means helping those who are excluded from the financial system to join and benefit from it. In this case banks are dedicated accounts for people on low incomes across several areas of the country.

In Bangladesh, government’s programs and policies seek to accelerate inclusive economic growth, focusing public expenditure outlays in developing the social and physical infrastructure, crowding in private investments in output activities. The government’s inclusive growth efforts are being supported by Bangladesh Bank’s (BB’s) financial inclusion drive engaging banks in reaching out with credit and other financial services to productive pursuits in under-served areas like small landholder/tenant farming, SMEs, renewable energy and other environmentally benign ventures. To facilitate cost effective reach out by banks to these newer client segments, branch based financial service delivery is being supplemented by mobile phone/smart card based remote delivery, as also by on-lending /co-financing partnerships of banks with locally active regulated Micro Finance Institutions (MFIs).