Financial Inclusion – A Path Leading to Social Security

Abstract

The primary goal of every civilised society is to ensure social security for its citizen. The Social Security (Minimum Standards) Convention , 1952 by the International Labour Organization (ILO) defines the traditional contingencies covered by social security as including survival beyond a prescribed age, to be covered by old age pensions, the loss of support suffered by a widowed person or child as the result of the death of the breadwinner (survivor’s benefit), Responsibility for the maintenance of children (family benefit), the treatment of any morbid condition (including pregnancy), whatever its cause (medical care) etc. The concept of social security is envisaged in the Preamble to the Indian Constitution wherein the aim is to constitute India into Socialist country by achieving Social justice. Undoubtedly, the social justice can’t be attained if rich become richer and poor having no access to basic banking services. In order to attain this Indian Government strives at Financial inclusion which as defined by RBI is the process of ensuring access to appropriate financial products and services needed by vulnerable groups such as weaker sections and low income groups at an affordable cost in a fair and transparent manner by mainstream Institutional players. In India financial inclusion envisage two concepts Financial literacy and financial inclusion....