Financial Inclusion at BoP – A Suggestive Model for Poverty Eradication in the North-East India

Finance

Billions at the bottom who live on less than a nominal income of 2$ a day, as projected by C. K. Prahalad, in his book “The Fortune at the Bottom of the Pyramid”, is an indignation and endeavour for the academicians, government machineries, NGOs, and so on so forth. They are human entities not numerical. Various financial indicators of North Eastern Region promulgated the dismal level of financial inclusion and banking outreach as compared to other regions of the country. The main factors that impede the dismally are the dependency on central grant, non-existence of self-sufficiency, geography of the region, sparse settlements of population, infrastructural bottlenecks, low level of commercialization and entrepreneurship, insecure law and order situations, low network of branches, nonexistence of customized and flexible financial products to suit the needs of the local population, poor loan recovery experience, and lack of awareness. The purpose of financial inclusion is to return the NER to the position of national economic eminence it held till a few decades ago; to so fashion the development process that growth springs from and spreads out to the grassroots; and to ensure that the Region plays the arrow-head role it must play in the vanguard of the country’s Look East Policy. Establishing a conceptual relation between inclusive capitalism and livelihood development of people of NER, paper will profound a roadmap for the financial inclusion.

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