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The pandemic has changed the whole world and created a huge impact on every sector. Today, the world is shrinking and global trade is expanding, different cultures are crossing each other at an ever faster pace. India is known for its diversity and it is the 7th largest economy in the world and one of the leading countries with strong economic growth year on year. Here, language is one of the factors that connects people and enables them to better understand each sector, including the financial sector. Language support is important for banking and financial institutions in a competitive market. This is one of the reasons why financial institutions are looking for people who can communicate clearly and effectively with customers from different parts of the world. In addition, several online platforms make multilingual language an important tool to reach their customers.
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Financial inclusion in India: how it started
Under the Pradhan Mantri Jan Dhan Yojana, about 192.1 million accounts were opened with the 165.1 million debit cards, life insurance cover of INR 30,000 and accident insurance cover of INR 1 lakh. In addition to PMJDY, there are several other financial inclusion programs in India: Jeevan Suraksha Bandhan Yojana, Pradhan Mantri Mudra Yojana, Stand Up India Program, Scheduled Caste Venture Capital Fund under Social Sector Initiatives, Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), Pradhan Mantri Vaya Vandana Yojana, Varishtha Pension Bima Yojana (VPBY), Credit Enhancement Guarantee Scheme (CEGS) for Scheduled Castes, and Sukanya Samriddhi Yojana, etc.
Importance of financial inclusion
Through financial inclusion, the poor can access economic resources and build the concept of savings. Financial inclusion contributes to the overall economic development of the disadvantaged population and is a step towards inclusive growth. Financial inclusion is crucial for the upliftment of poor and disadvantaged people by providing them with modified financial products and services.
Role of language in financial inclusion in rural India
When we talk about raising awareness about financial literacy, language plays a crucial role. It is important to reach people in their local language to reach the diverse and multiple population. Moreover, knowing a language involves more than just the ability to speak; it also involves an understanding of other cultures. Therefore, investment banks are looking for candidates who also have a multicultural mindset. This indicates that you can handle any transaction in English as well as other regional languages. A large portion of India’s population lives in rural areas and plays a major role in the economy. Rural economies contribute close to 25-30% of GDP.
Including digital inclusion of financial services
Despite this large-scale impact, financial inclusion still has a long way to go. According to a recent report released by the Reserve Bank of India, India still has the second largest unbanked population in the world. In fact, on a scale of 100, India’s annual Financial Inclusion Index in 2021 was 53.9. A significant portion of our population still lives outside the realms of digital finance and financial inclusion and depends on informal sources of credit. Access to financial products and services is essential to the economic well-being and economic growth of the country. Mobilizing household savings and successfully allocating them to the economy’s growing need for credit contributes to the country’s sustainable development. Many smaller banks and financial institutions, as well as commercial banks, have made great strides in digitizing the credit ecosystem. There is also a disparity between rural and urban dwellers in the use of financial system services. Effective tools are needed to bridge the gap and engage every section of the population in all regions, whether rural or urban, to participate in day-to-day financial activities.
Collaboration will remain key
The Indian government has also considered that rural growth, which is highly dependent on financial inclusion, continues to remain a key priority on India’s agenda. To augment this continued growth, the government is working with the Reserve Bank of India to introduce several financially inclusive measures for the welfare of residents. To enable inclusive economic development in the country, several measures are being taken to support lenders and insurers.
According to reports, rural progress, also known as a key agenda in 2022, will require various stakeholders to work together to create far-reaching impact. Moreover, financial institutions, in collaboration with credit bureaus, can play an instrumental role in strengthening financial mechanisms and expanding financial literacy in rural India using a multilingual approach, which which will go a long way in accelerating India’s social and economic progress.
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