Paper Key : IRJ************150
Author: Dr. Kavita Agrawal, Nisha Ahirwar
Date Published: 05 Apr 2025
Abstract
Financial inclusion has emerged as a powerful instrument in the global fight against poverty and economic marginalization. It refers to the accessibility and availability of affordable financial servicessuch as savings, credit, insurance, and payment systemsfor all individuals, particularly those traditionally excluded from the formal financial sector. This paper explores how inclusive financial systems contribute to poverty reduction by enabling individuals and small businesses to build assets, manage risks, and invest in education, health, or entrepreneurial activities. When people are financially included, they gain the tools necessary for improving their quality of life, breaking cycles of dependency, and becoming active participants in economic growth. The study also examines how financial inclusion promotes economic empowerment, especially among women and marginalized groups, by fostering financial independence and greater decision-making capacity. Through access to microfinance, mobile banking, and digital payment platforms, previously underserved communities can now integrate into the broader economy. However, despite progress, barriers such as lack of infrastructure, low financial literacy, and regulatory hurdles continue to pose challenges. This paper concludes that for financial inclusion to be truly effective in reducing poverty, efforts must focus on accessibility, affordability, and education, while ensuring that financial services are tailored to meet the diverse needs of the population.
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