Revolutionizing Rural Finance: AISECT’s Decade-Long Journey in Financial Inclusion Mayank Patil June 6, 2024

Revolutionizing Rural Finance: AISECT’s Decade-Long Journey in Financial Inclusion

AISECT’s Decade-Long Journey in Financial Inclusion

Do you know, as per a World Bank report India’s financial inclusion rate rose from 25% in 2008 to over 80% among adults in the past 6 years?

India has become the epicentre of a shift towards digital payments in rural and urban areas which is propelled further by the pandemic over the past few years. The Indian digital revolution has gained momentum from schemes like the PMJDY which is aimed at offering financial and banking services to the unbanked population. In addition to that Adhaar-linked solutions for payment have emerged as a means to verify beneficiaries and individuals based on biometric information. Moreover, numerous startups are actively developing solutions for addressing various aspects of the digital payment landscape. Instead of all these developments, there are various challenges that need to be resolved which are being faced by rural consumers. It includes irregular streams of income, limited access to fiscal services and low levels of financial and digital literacy.

AISECT was established in the year 1985 to bridge the digital divide gap between the semi-urban and rural masses and build a capable generation.  The organisation aspires to empower the next generation with the right skills as well as exposure to cultural identities. AISECT is responsible for transforming lives by skilling and upskilling individuals, digitally enabling services for India, providing quality and affordable higher education, helping in e-governance, promoting Indian art and culture, expanding the reach of financial services and finally connecting youth with employment, livelihood and entrepreneurship opportunities.


AISECT’s Decade Long Journey


According to statistics, India’s financial inclusion index has improved to 56.4% from 53.9 in the previous year 2021.

AISECT or All India Society for Electronics and Computer Technology is a social enterprise operational in India. It has a mission to offer skill-based services, training and education to underserved communities. One of its most notable endeavours is AISECT FI which strives to foster financial inclusion among disadvantaged and rural populations in India. The initiative encompasses a wide range of financial services including micro-insurance, savings, loans and remittance services which primarily target individuals residing in remote and underprivileged areas. For the execution of these services efficiently, AISECT FI collaborates with a spectrum of partners from banks to microfinance institutions.

The primary objective of AISECT financial inclusion is the empowerment of people through the provision of access to fiscal services. It enhances financial literacy while promoting financial self-sufficiency. These concerted efforts aim to remove poverty and stimulate economic growth within underprivileged and rural communities. AISECT FI started its journey in 2007 as a part of the broader group of AISECT’s commitment to driving social and economic development in marginalised communities throughout India. The inception of the initiative was driven by the aim of providing fiscal services to individuals who lacked access to formal banking systems.

Initially, AISECT FI collaborated with localised banks to provide fundamental banking services including remittance, micro-insurance services and savings accounts to the rural populace. However, there has been an evolution for this initiative, expanding its offering to encompass micro-finance services, including loans for helping small businesses and individuals in accessing credit. In 2009, the initiative received recognition from RBI designating it as a BF (Business Facilitator) and BC (Business Correspondent). this recognition played a significant role in the expansion of the reach of AISECT FI and its network while enabling its mission to reach a greater number of personnel in need of fiscal services. It currently collaborates with more than 50 banks and financial institutions providing a wide variety of fiscal services to 10 million customers in numerous rural and urban areas across India. 

Challenges Addressed


It is estimated that 1.7 billion adults do not have access to financial services and 1.4 billion adults remain unbanked and lack a bank account.

AISECT FI has addressed many challenges related to financial inclusion in rural India. One of the striking challenges it addressed is credit access in rural areas. There are various challenges linked to the concept of credit access which include the lack of formal fiscal institutions, limited collateral options, and low awareness towards financial literacy. In addition to these, challenges also persist relating to the high cost of credit and inadequate connectivity and infrastructure.

AISECT FI has developed a wide range of financial services and products that are tailored to the specific requirements of rural communities. These include micro-finance loans, agricultural loans, and small business loans among others. The initiative also employs technology to make its services more accessible as well as efficient such as mobile banking and other digital platforms. In addition to that, it also offers financial literacy programs to educate the masses about financial management and the promotion of financial inclusion. These are the programs that are designed to increase awareness of financial services and products, improve financial literacy and encourage responsible fiscal behaviour. 


AISECT Financial Inclusion has played a significant role in unlocking the availability of credit in rural areas. The organisation has worked effortlessly to bridge the gap between rural residents and formal fiscal institutions. They have done this by providing access to credit and other fiscal services. The impact of AISECT Financial Inclusion’s role in unlocking credit access in rural areas can be seen in various ways:

  1. Improved access to credit
  2. Increment in financial literacy
  3. Employment generation
  4. Improvement in standard of living


In conclusion, AISECT’s decade-long journey in revolutionising rural finance through its initiative of financial inclusion stands as a beacon of progress in addressing the challenges faced by rural communities in India. As the country witnessed a remarkable surge in FI rates, AISECT FI has played a significant role in empowering individuals in remote and underprivileged areas. The commitment of the organisation to skill-based services, digital enablement and education has not only enhanced financial literacy but also promoted self-sufficiency among the rural population. AISECT FI’s evolution from providing basic services related to banking to encompassing a comprehensive range of fiscal products showcases its dedication and adaptability to address specific requirements.  for more details visit

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