Financial Inclusion is defined “as the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as the weaker sections and low income groups at an affordable cost”. In other words it is the process of providing banking services to the poor sections of the society at affordable cost and aims at providing services like savings, payment, insurance etc. It is a fact that many sections of the society in India have been neglected by the banks. Such exclusion slows down the development and economic growth of any country. Therefore,Financial Inclusion primarily focuses at making the financial services available at affordable costs to the low income and disadvantaged groups of the society.
1. Poverty Reduction
Poverty is the greatest enemy of human beings. Poverty denies a human to attain even his basic necessity for survival and it acts as a hindrance for the development of the economy. Without proper financial systems, poor people must rely on their own limited savings to invest in their education or become entrepreneurs.So poverty can be reduced only when there is a proper financial system .In this way, they can increase their savings which will lead to high standard of living which in turn will reduce the poverty of people.

2. Financial Stability
“Greater financial inclusion presents opportunities to enhance financial stability” In India most of the people follow prior savings theory developed by Keynes. Evidence