Financial Inclusion

The Department aligns its activities with the agenda of financial inclusion of the excluded population as per the framework and scope described by the Report of the Committee on Financial Inclusion utilizing the Financial Inclusion Fund (FIF). The major activities include formulation of schemes for financial literacy, knowledge dissemination, creation of FI infrastructure, facilitating technology adoption by banks and policy advocacy.

NABARD has supported Financial Literacy efforts through various initiatives keeping in mind its importance to augment demand for financial services, especially for those offered on the digital platforms. In addition, in order to augment the supply side of the financial ecosystem, NABARD has also extended support for on-boarding to digital platforms, improving connectivity and meeting regulatory requirements.

NABARD has adopted a differentiated strategy since 2019-20 for focussed Financial Inclusion Fund (FIF) interventions which still continues to address regional inadequacies to bring about inclusive and equitable financial inclusion across the country. Under the strategy, grant assistance is provided at enhanced rate of 90% for Special Focus Districts (SFDs) which includes aspirational districts, LWE districts, credit deficient districts, districts identified by RBI, and districts in Hilly states and NER as well as Andaman and Nicobar Islands. In case of other districts, there will be standard participation share of FIF support vis-à-vis type of bank viz., SCBs (60%), RRBs (80%) and RCBs (90%) or ceiling prescribed under the scheme.

Corpus and Sources of Funds

The contribution to FIF is made from the interest differential in excess of 0.5% in respect of Rural Infrastructure Development Fund (RIDF) deposits, Warehousing Infrastructure Fund deposits and Food Processing Fund deposits placed by the Commercial Banks as deposits with NABARD out of priority sector shortfalls. Contribution for GoI schemes/ initiatives, which is monitored by the Sub-Committee of the Advisory Board, is provided by the Government of India.

Standard schemes on tap

1) Financial Awareness/ Financial Inclusion

i) Financial and Digital Literacy Camps by branches of banks
ii) Financial and digital literacy camps through FLCs
iii) Centres for Financial Literacy (CFL)
iv) Reimbursement of Examination fee of BC/BF
v) Demonstration Van for Financial Literacy
vi) Handheld Projector with Battery, Screen and Speakers
vii) Kiosk Outlets in unbanked villages of North Eastern Region (NER) States
vii) Incentive scheme for BCAs/CSPs in NER and hilly states/UTs

2) Banking Technology Adoption

i) Deployment of microATMs
ii) POS/mPOS Deployment in Tier 3 for 6 centres
iii) Dual Authentication facility at BC Point
iv) On–boarding to BHIM UPI
v) On-boarding to PFMS Platform
vi) Implementing Green Pin facility
vii) On-boarding to BBPS

3) Regulatory Infrastructure Support

i) Membership of AUA/KUA
ii) On-boarding to CKYCR
iii) Support for Positive Pay System

4) Support For Connectivity and Power Infrastructure

i) VSAT/HTS VSAT deployment
ii) Mobile Signal Booster deployment
iii) Solar power unit/ UPS deployment

Operations under FIF as on 31 March 2025

Total Sanctions: Rs 6233.28 crore Total Disbursements: Rs 3540.50 crore