Union Bank of India: Initiatives towards IT-enabled Financial Inclusion

Abstract

The economy is on the path of growth trajectory as a result of vibrancy in all-round economic activities. At present, the financial depth in Indian economic scenario is not that encouraging as in other Asian countries, although it has demonstrated gains in momentum. There is a strong interrelationship between economic growth and financial growth through financial inclusion. Financial inclusion involves the concerns related to the operating costs that are inherent in wider expansion. Similarly, the charges levied are an important aspect, along with the inability to reach rural and unbanked areas. Here, information technology (IT) can play an important role not only in reducing the operating cost but also in covering most of the regions which are unbanked. IT provides various solutions for financial services to the people devoid of banking facilities in the form of mobile banking and micro ATM. This case highlights the various IT measures and schemes launched by Union Bank of India towards financial inclusion as per the guidelines of Reserve Bank of India (RBI).