Financial inclusion or inclusive financing is the delivery of financial services at affordable costs to sections of disadvantaged and low-income segments of society, in contrast to financial exclusion where those services are not available or affordable. An estimated 2 billion working-age adults globally have no access to the types of formal financial services delivered by regulated financial institutions Even after 60 years of independence, a large section of Indian population still remain unbanked. This malaise has led generation of financial instability and pauperism among the lower income group who do not have access to financial products and services. However, in the recent years the government and Reserve Bank of India has been pushing the concept and idea of financial inclusion. Policy makers have grapped with the issue of reducing the scope of informal sector since colonial times .Nicholson report (1895) was the first to highlight the need to establish “LAND BANKS” as an alternative to dominace of money lenders . resulting , the cooperative credit societies Act , 1904 was passed to provide , amongst other things , a legal basis for cooperative credit societies .