Inclusive Growth Through Village Level Entrepreneurs: A Case Study of Khidmat Centres in Jammu and Kashmir

Economic survey 2013-14 published by the government of Jammu and Kashmir (J&K) provides that of the total population of 1.25 Crores, 24.21 Lakh are below the poverty line. This includes even those people who are financially excluded. Government of India in the year 2010 made it mandatory for banks to bring the unbanked and the under-banked section of the society under the fold of a bank to make them financially ‘included’. In J & K, the responsibility of the same was given to the Jammu and Kashmir bank Ltd. It initiated the process of financial inclusion by putting business correspondents which they call as Khidmat Centres in place. As per annual report of the bank (2013-14), 697 Khidmat Centres are operational in J & K, covering 2,572 villages and 12.18 lakh accounts have been opened. This case study aims to demonstrate the role these Khidmat Centres are playing in the financial inclusion plan of the bank. It further does a reality check based on a primary survey. Analysis reveals that the services and products on offer, have not yet been completely provided to the concerned people. This plan has still a long way to go to prove to be successful in bringing the unbanked and the under-banked under the fold of the bank.