Financial Inclusion and Financial Stability: A Conceptual Understanding

ABSTRACT

Today it is seen that most of the developing countries are trying to incorporate financial inclusion in the mainstream society, so that the lower income groups and the deprived sections of the society can take the advantage of the same. This will lead to financial stability in the economy. The main question here is whether these concepts of financial inclusion and financial stability are dependent or are independent phenomena and which are more linked for achieving higher economic growth. There are both positive and negative aspects which can be highlighted to check the positive and negative impacts of financial inclusion on achieving financial stability. The present paper will thus focus on the aspects of financial inclusion and financial stability on whole and bring their relevance in bringing overall economic growth and development of the national economy.

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