Financial Inclusion Fund (FIF) by RBI- Key Points Explained

Financial Inclusion Fund (FIF) was formed by merging FIF and Financial Inclusion Technology Fund (FITF) and established by RBI

FIF and FITF were established in the year 2007 – 2008 over a period of five years
Initial corpus was 500 crore
Contribution of GOI, RBI and NABARD was in the ration 40:40:20
RBI framed guidelines for both these funds
RBI merged both funds into a single entity named FIF and came into effect in 2016

To create awareness among people about financial inclusion
To set up financial literary centres at every block level
To cater to the services of Jan Dhan Yojana account holders
To set up standard kiosks to create financial literacy in gram panchayats
The Kiosks will be highly interactive to educate the masses
NABARD support to establish skill development centres (SETI)
SETI aimed at imparting skills necessary for generating income
To provide linkages in a forward manner and establish marketing activities
To improve network connectivity by sharing government projects pertaining infrastructure and telecommunication development

To enhance financial inclusion on a large scale
To support promotional and development activities
Increased technological absorption capacity
To provide ICT solutions
To increase stakeholder capacity building
FIF funding is done through ICT – BC model (Information and Communication Technology – Business Correspondent Model)
To support banks investment in purview of business expansion in future
To address the various issues pertaining to financial inclusion including training, skill development, creating awareness and lack of infrastructure and ICT etc

Contribution to FIF in excess of 0.5 percent from STCRC and RIDF deposits
NABARD to maintain all the fund sources and FIF
FITF funds transferred to FIF
RBI decides operation of FIF for a fixed period of years
Union government in consultation with other stakeholders decides important amendments on FIF
FIF will be included as a part of National E-Governance plan

FIF seems to a positive step forward to enhance financial inclusion
This is yet another measure of GOI to move towards a digital lifestyle and a cashless economy
Financial inclusion and its benefits will be known to the common people through training programs conducted through FIF
This will help majority of the Indians to come into the formal banking sector
Subsidies will reach the beneficiaries directly in the bank accounts
FIF is a positive step of RBI, GOI and NABARD to educate the rural masses and bring them under financial inclusion