Day: 10 July 2024

Ushering a new phase of Financial Empowerment … An era of Financial Inclusion 2.0 with TBGFL… The phrase that will be buzz of the near future is Financial Inclusion 2.0. Today we stand comfortably in a phase where we can say that there is financial inclusion. The common man and smaller businesses have access to useful financial services – primarily the banking which has become the most opted for way of transacting and payments. UPI has become the gift to common man and the use of cash has vastly dwindled. This has helped the common man to save time and energy and brought convenience to their fingertips. Equally contributing to this improved case of financial inclusion are affordable internet services and extensive mobile connectivity. The phase beyond the basic banking inclusion is what I refer to as Financial Inclusion 2.0. where the common man would have access to extended services beyond just savings in the bank. This will be the era of using the technology and growing an understanding of how money works and what impacts it and using it to secure the future with investments that assist in wealth creation and security of lives with various financial products. Financial Inclusion has started with basic banking. It’s the start of savings channelled into the system. We know that saving in the bank alone is not enough, as it leads to fall in the real value of money with the impact of inflation. Financial Inclusion 2.0 will take it to the next level with the start of investing, the start of wealth creation. There will also be the vast reach and spread in the securing of the lives of dependents in case of unwarranted incidents and losses through insurance of various kinds be it health, life, business, crop/monsoon etc for farmers, assets and such. The increased reach of such products will help reduce the costs of these services. Today we have the necessary technology, we have robust regulations and monitoring mechanism and the common man has adopted the ease of transacting through mobile with UPI, mobile banking and such. This next phase of Financial Inclusion 2.0 is only possible and can be fuelled with Financial Literacy. A skill not thought formally in Indian education system yet crucial for building confidence, uplifting lives and aiding to build a future with financial stability for all.. Today we have the basic infrastructure in place. People receiving payments through UPI means they have Aadhar and basic KYC is done. The idea to use this infrastructure to assist or make it easy for common man to invest in various financial products including market investments through avenues like MFs through platforms like or similar to UPI app etc (that are extremely user friendly) has to gain momentum and eventually the formation of the eco-system to invest with ease. The lower income group’s popularity with chit fund is a known case. Many invest in chit funds to receive a lumpsum at the end of a period, often unaware that they could earn nominal interest if they saved or invested with banks as RD or FD. In chit funds the smart few take advantage of the innocent or uneducated people. These people invest for 2-3 years and at the end of it they don’t even get what they invested. They get one or two months less contributions as that is the chit fund managers income. The way these people see it is - I am getting a lump sum at the end of the tenure that I can do something with whereas I wouldn’t have been able to save it myself by keeping cash with me either for fear of being robbed or someone indulging in wrong habits and stealing them of their savings. At times they even lose all that they have invested. Developing an eco-system where people can invest in various avenues with ease is a significant need with undeniable potential for a larger impact. With slight tweaks in entry rules, the benefits to individuals, the system and economy and country can only be as huge as one can imagine from where we stand. I wish that the system and those responsible for building the system enable further evolution and create a conducive environment for moving into the phase of Financial Inclusion 2.0. This initiative - TBGFL has been an effort in this direction aiming to contribute to the Financial Literacy of the common man which is fundamental for further financial empowerment and inclusion. I see the start of the next phase of financial revolution in our country. Join the movement. #Financialinclusion2.0 #TBGFL#Financialempowerment