Abstract

Cooperative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly-owned and democratically controlled enterprise. Financial Inclusion is critical for achieving inclusive growth in the country. The Financial Inclusion initiatives will go a long way in not only financially empowering the people but also as an avenue of providing excellent business opportunities for the financial market participants. Experiences in the Developing nations have only reconfirmed the need for co-operative banking to bring about inclusion of this segment in the mainstream economy. The present study has two fold objectives. Firstly, to analyze the problems and challenges associated with cooperatives in India. Secondly, to examine the role of cooperatives as it affects financial inclusion in India. The present study is based on secondary data collected from published government documents, reports, journals etc. With regard to financial education, it is crucial to harness the power of women. Just as it is said that a woman getting educated would educate the family, a woman being financially literate and included, would pave way for inclusion of all members in the family. Financial inclusion will act as a source of empowerment and allow people to participate more effectively in the economic and social process.

Key words: Cooperatives, financial exclusion, financial inclusion.