Microfinance

 In the development of Indian economy, high speed of economic development has led to the development of basic economic services and micro-finance. In spite of the rapid development of basic financial services and inclusion in cities or in relatively rural areas, these services and measures are still at a standstill in remote and poor areas. The most effective response to this dilemma is to increase the provision of basic financial services and microfinance outlets to ensure that each region has the right to enjoy economic services and microfinance applications （Mrunal & Vikram 2016, p. 3). Financial incentives can ensure the safety of individual funds in the bank,

while banks will generate  certain benefits for customers, that is conducive to the formation of financial service systems in poor areas.

The first argument for establishing of basic financial services and microfinance in poor areas and outlying areas. The imbalance of regional economic development is the main factor that restricts the development of basic financial services and microfinance in poor areas and outlying areas( Harpeet  & Kawal 2015, P. 21). Poor areas and remote areas of commercial banks and microfinance institutions are relatively small, because the cost of building new outlets in poor areas and remote areas of the opportunity cost is higher than the cost of building a network in the city. In order to enhance the overall level of economic development in India, each region should enjoy the same basic financial services and microfinance services, to ensure that every citizen in India to enjoy the right. Research shows that the poor areas and remote areas of low-income people who enjoys financial services and involves with credit service participation, increase to shop, not only improves the financial level in outlying areas and poverty-stricken areas, but also in the areas where they have never had the basic financial services and microfinance services. Research data show that in recent years, the number of financial services and microfinance outlets in poor and remote areas will continue to rise, to enjoy the service and rich area enjoy the gap between financial services is steadily decreasing, poverty-stricken areas and remote areas of basic financial services and microfinance services is to the goal of equality forward ( Nafee & Folia 2013, p. 202).

The second argument to ensure the commercial banks of the depositor funds safety, the study found that by putting the money in the bank, personal financial assets can be effectively increased, however, cash savings of individual monetary assets increase, not have a positive impact. Depositors can build more deposits to prevent accidents and save money ( Silvia 2013, p. 23). In addition, the bank has a good reputation in the country, in order to ensure the safety of depositors' funds. At the same time, commercial banks can save and use the funds in their deposits, forming a huge capital flow, so that their capital productivity in human capital, financial services, as well as the positive impact on health investment. In addition, due to the further acceleration of economic development in India, however, poor and remote areas of financial services system is still not perfect, cannot provide basic financial services and microfinance for most people. Recent surveys have found that crime rates in poor areas and remote areas are increasing year by year, so many of the people who love cash savings are more likely to be threatened by crime, resulting in the loss of property(Lakshmi & Petia 2014, p. 14). To this end, the government encourages people to use basic financial services and micro credit business to reduce the use of cash, to avoid the loss of personal property.

The third argument is that banks bring certain benefits to their customers Their own and microfinance institutions generate profits in some ways to develop the local financial services system. First, the bank by deposits  attract a lot of money flow from a series of investment and profit of a part of the deposit certificates of deposit and stimulate more money to bank deposits, banks are able to grasp the investment and development of more funds. For example, the bank can get plenty of money in the bottom of the wealth pyramid of people, when a enterprises need a large number of funds need to apply for bank loans, the banks will loan allocated to the enterprise, but need to interest to the bank, the bank portion of the profits can be to depositors agreed in advance of interest disbursement of funds. Second, banks and credit institutions can obtain customers through microfinance, and in the middle of the micro credit and long-term interests of the process to get profits. Banks can cross to enjoy the way to sell financial products, such as small insurance, financial products, etc( Priyanka & Jyoti, 2014, p. 30). Banks and credit institutions can broaden the scope of financial services in these areas. A recent survey shows that due to the development of the poverty-stricken areas and remote areas of basic financial services and microfinance business with a slight, insurance business and its subsidiaries of financial products also has the new life, to further strengthen the development in poor and remote areas of the financial services system.