Role Of Language In Financial Empowerment In Rural India Several online platforms are making multilingual language an important tool to reach out to their customers

By Praveen Dhabhai

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The pandemic has changed the entire world and it has created a huge impact on each sector. Today the world is growing smaller and the global business is growing larger, different cultures are intersecting at an ever-increasing pace. India is known for its diversity and it is the 7th largest economy globally and one of the leading countries demonstrating high economic year-on-year growth. Here language is one of the factors that connect people and makes it easy for them to understand each sector better including the financial sector. The support of language is important for banking and financial institutions in a competitive market. This is one of the reasons that financial institutions are seeking people who can communicate clearly and effectively to customers from different parts of the world. Additionally, several online platforms are making multilingual language an important tool to reach out to their customers.

Financial inclusion in India: how it started

Under the Pradhan Mantri Jan Dhan Yojana, around 192.1 million accounts have been opened along with the 165.1 million debit cards, a life insurance cover of INR 30,000, and an accidental insurance cover of INR 1 lakh. In addition to PMJDY, there are several other financial inclusion schemes in India: Jeevan Suraksha Bandhan Yojana, Pradhan Mantri Mudra Yojana, Stand Up India scheme, Venture Capital Fund for Scheduled Castes under the social-sector initiatives, Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), Pradhan Mantri Vaya Vandana Yojana, Varishtha Pension Bima Yojana (VPBY), Credit Enhancement Guarantee Scheme (CEGS) for scheduled castes, and Sukanya Samriddhi Yojana, etc.

Importance of financial inclusion

Through financial inclusion, the poor can access economic resources and build the concept of savings. Financial inclusion aids in the overall economic development of the underprivileged population and is a step towards inclusive growth. Financial inclusion is crucial to the upliftment of the poor and disadvantaged people by offering them modified financial products and services.

Role of language in financial inclusion in rural India

When we talk about creating awareness among people about financial literacy, language plays a crucial role. It is important to reach out to people in their local language to reach out to the diverse manifold population. Moreover, knowing a language involves more than simply the ability to speak; it involves an understanding of other cultures as well. Hence, investment banks look for candidates who are also multi-culturally minded. This indicates that you can handle any transaction in English as well as in other regional languages. A large portion of India's population lives in rural areas and plays a major role in the economy. The rural economies contribute nearly 25-30 per cent of the GDP.

Including digital inclusion of financial services

Despite this large-scale impact, financial inclusion has a long way to go. As per a recent report released by the Reserve Bank of India, India still has the second-largest unbanked population in the world. In fact, on a scale of 100, India's annual Financial Inclusion Index in 2021 stood at 53.9. We still have a significant portion of our population living outside the realms of digital finance and financial inclusion and depending on informal sources of credit. Access to financial products and services is critical to the nation's economic well-being and economic growth. Mobilizing people's household savings and allocating them successfully to the growing credit requirement of the economy helps in the sustainable development of the country. Many small finance banks and institutions, and commercial banks have made great strides in digitizing the credit ecosystem. There is also a disparity among the people of rural and urban areas in availing of the services of the financial system. There is a requirement for effective tools to bridge the gap and bring in every section of people from all parts whether rural or urban to take part in the mainstream financial activities.

Collaboration will remain the key

The Indian government has also considered that rural growth, which is deeply dependent on financial inclusion, continues to remain a key priority of India's agenda. To Increase this continued growth, the government is collaborating with the Reserve Bank of India to introduce several financially inclusive measures for the well-being of residents. To enable inclusive economic development in the country, several steps are being taken to support lenders and insurers.

As per the reports, rural progress, also known as a key agenda in 2022, will require various stakeholders to work together to create a wide-ranging impact. Additionally, financial institutions in collaboration with credit bureaus can work as an instrumental factor in strengthening financial mechanisms and expanding financial literacy in rural India with the help of a multilingual approach, which will go a long way in accelerating India's social and economic progress.

Praveen Dhabhai

COO, Payworld

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