Abstract: our country. A vast majority of

Abstract: Financial inclusions have been emerging as a standard in the economic growth that has a major role in diminishing poverty from the country. It becomes a challenge for the Indian economy because majority of the population is still not included in the inclusive growth .It refers to delivery of banking services to a large group including the honored and the underprivileged society at an affordable terms and conditions. Financial inclusion is an important advantage for the country in terms of economic growth and advancement of the society. Where, it helps to reduce the distinction between the elite and the poor society. In the current scenario financial institutions are the vigorous strength in the advancement of economic expansion and development of the economy. This study aims to examine the effect of financial inclusion on growth of the economy. The study has  found positive and significant impact of number of bank branch and Credit deposit ratio on GDP of the country, whereas an insignificant impact has been observed in case of ATMs growth on Indian GDP.Keywords: Financial inclusion, GDP, Bank Branches, ATMs growth rate, Credit deposit ratioI. IntroductionIndia is a country with 1.2 billion people, spread across 29 states and seven union territories. There are around 600,000 villages and 640 districts in our country. A vast majority of the population, especially in rural areas, is excluded from the easy access to finance .40percent of the households having bank accounts, but only 38% of the 117,200 branches of scheduled commercial banks are working in rural areas. Accessibility of financial services at affordable and appropriate prices has been always a global issue. Hence, an inclusive financial system is widely required not only in India, but has become a policy priority in various countries. So, RBI has been continuously stimulating the banking sector to extend the banking network both by setting up of new branches and installation of new ATMs.Definition: 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 weaker sections and low income groups at an affordable cost”. During April 2012, World Bank carried out a study which revealed that only 9 per cent individuals’ avails new loans from banks in the previous year and 35 per cent population are having formal bank accounts in India whereas in the case of developing economies it is 41 per cent.Concept of Financial Inclusion :Financial inclusion means the delivery of financial services, including banking services and credit, at an affordable cost to the vast sections of disadvantaged and low-income groups who tend to be excluding .Financial inclusion takes into account the participation of vulnerable groups such as weaker sections of the society and low income groups, based on the extent of their access to financial services such as savings and payment account, credit insurance, pensions etc. The aim of Financial Inclusion (FI) is to make easy access of financial services to the large underprivileged population of the country. In order to reap the benefits of the financial services, lot of measures has been taken by Government of India in the favor of poor and neglected section of the society. The different financial services include access to savings, loans, insurance, payments and remittance facilities offered by the formal financial system. This aspect of financial inclusion is of vital importance in providing economic security to individuals and families. India is one country where the Financial Stability and Development Council (FSDC) have a specific mandate for financial inclusion and financial literacy. There is a separate Technical Group on Financial Inclusion and Financial Literacy under the aegis of FSDC with representation from all the financial sector regulators. In order to spearhead efforts towards greater financial inclusion, RBI has constituted a Financial Inclusion Advisory Committee (FIAC) under the Chairmanship of a Deputy Governor from RBI. Factors affecting access to financial services:Access to financial services has been recognized as an important aspect of development and more emphasis is given to extending financial services to low-income households as the poor lack the education and knowledge needed to understand financial services that are available to them. The lack of financial access limits the range of services and credits for household and enterprises. Although there is some evidence that access is improving but still there are multiple factors which have affected the access to financial services.o Place of livingo Absence of legal identity and gender biasnesso Limited knowledge of financial serviceso Level of income and bank chargeso Rigid terms and conditionso Type of businessII. Objectives of the studya. To examine present scenario of financial inclusion in India.b. To investigate the major factors affecting access to financial services.c. To study the impact of financial inclusion indicators on growth of Indian economy.III. Review of literature• Dangi and Kumar (2013) examined the initiatives and policy measures taken by RBI and Government of India. This study also focused on current status and future prospects of financial inclusion in India. It has been concluded that financial inclusion shows progressive and valuable changes but sufficient provisions should be incorporate in the business model to certify that the poor are not driven away from banking. • Suryanarayana (2008) focused on definition of inclusion/exclusion with reference to an outcome scenario for broad-based growth as reflected in estimates of production, income, and consumption distribution. The study helps in drawing a sketch of occupational, social, regional profiles of the excluded in the mainstream growth process. Hence researcher made an attempt to provide a perspective, a measure of inclusion, and finally an evaluation based on the available estimates of consumption distribution for the year 2004–2005 for India.