The Role of NBFCs in Promoting Financial Inclusion Among Economically Weaker Sections in India

The Economically Weaker Segment (EWS) in India comprises individuals and families from the unreserved category earning less than ₹1 lakh annually. With a dedicated 10% reservation in the general category, the EWS initiative aims to uplift this group through targeted financial inclusion strategies. Financial inclusion ensures access to essential financial services like credit, insurance, savings, and payment mechanisms, critical for economic empowerment and poverty alleviation. Government schemes such as Pradhan Mantri Jan Dhan Yojana (PMJDY), Atal Pension Yojana, and Pradhan Mantri Mudra Yojana are instrumental in this effort. This study specifically examines the role of Non-Banking Financial Companies (NBFCs) in enhancing financial access among economically disadvantaged populations. Through a structured survey conducted in rural and semi-urban areas of Coimbatore district, the study evaluates awareness, usage, satisfaction levels, and the impact of NBFC services on the financial well-being of the EWS. The findings underscore the importance of NBFCs in filling the service gaps left by traditional banks, promoting financial literacy, and offering accessible and customized financial products to marginalized communities.