Abstract

                         National economic growth is accompanied by an intensified polarization among region and an increase in disparities among them. Only in a few countries national economic growth is accompanied by a narrowing of regional imbalances. The benefits of economic growth and financial sector reforms will trickle down to common people only after having balanced regional development. The paper finds out the reason of regional disparities and attempts to have balanced regional development through financial inclusion. It is found that one of the way through which balanced regional development could be achieved is better access to credit and financial services. The paper reveals that with an increase in income, loan taken from bank instead of money lender increases. This multiplier effect disperses benefits of economic growth to all sections of society and to different regions of the nation through financial inclusion. The paper concludes by suggesting that it may be time to consider financial inclusion in terms of generating income if balanced regional development is to be a priority.

Keywords: inclusion, regional development, bank, disparities, monetary.