Feasibility study of integrated banking product for the rural poor in India

Financial inclusion refers to the process of ensuring fair, timely and adequate access to saving, credit, and insurance services, payment and remittance facilities, at an affordable cost in a fair and transparent manner by the mainstream institutional players. Studies at national and international level suggest that while opening of bank accounts can be the first step towards financial inclusion of the poor, keeping them connected with the banking system remains a challenge. The present paper attempts to carry a feasibility study in one of the most underdeveloped state in India, to understand the awareness and acceptance of financial service among people below poverty in order to design a customized micro financial product covering health insurance. Based on the self-administered survey it was found that the as needs and demand of the poor for health insurance, depend on local conditions, ‘One-size-fits-all’ should not be the criterion while designing an integrated micro finance product with micro health insurance being its prime component.