Question

RFM Assignment 2 – Money & Capital Market Instruments

• What steps have been taken by that country (Italy) for success to the execution of financial inclusion strategy?

Answer 1

Italy being one of the members of the G20 nations have contributed not only toward the regional financial integration bringing all under the formal financial sector but also toward making global policy decisions in the G20 world .

In its step towards the implementation of financial inclusion , it had ttaken comprehensive set of action indicators , indicating the performance regarding the achievement of financial inclusion .

The main objectives of these is to promote and improve

· Access

· Reach

· Quality

Of the financial services rendered to the distant population of the country

No	Financial Inclusion Step	Description
1	Accounts in the formal banking sector	There has been significant impromentnt in the No of adults having account with the banks. The use of indigenous money lenders have significantly reduced
2	Depth and reach of banking services	The branch metrics data shows that , the correspondent model of increasing the penetration for bank branches through the availably of banking services through the outsourced authorised agents have also increased
3	Approved access of Credit from regulated institutions	The availably of credit was made more availbe sector wise . Particular sector was target for lending was given to banks and Fi in order to main the balance of credit in the economy
4	Use of Digital / Electronic Txn	High volumes of Non-Cash based txn were seen by the spread of Mobile – based payments services . The access has been widely spread with the availability made through the various cellular operators , operating in the distant regions
5	Propensity to save	The balance between the savings and households expenditures have improved More funds flow have been seen in the CASA ratio of the banks
6	Financial Literacy	Financial literacy programs by various NBFC and banks have shown the rise in consciousness among the migrant populations

Thanks