Financial Inclusion (FI) is a protracted process, especially in remote rural and forest fringe areas where access to financial products and services are constrained by demand and supply side bottlenecks. These bottlenecks have been identified by All State during studies in Odisha, Rajasthan, Gujarat and by drawing from the learnings of earlier studies undertaken in the states of Tamil Nadu, Karnataka, Uttar Pradesh and Haryana. The study has examined possibilities to transform the existing revolving fund mechanism into a sustainable and market oriented financial inclusion through the participation of formal financial institutions. Thus, All State has recommended to transform/diversifying Revolving Fund (RF) and its loan product’s features as per the need of SHGs/target community with Vulnerability Reduction Finance, Livelihood Finance and General Purpose Finance. Also, it is suggested to adopt a holistic approach to address the above gaps by leveraging benefits of the financial inclusion programmes being implemented by Central and State governments.
