Discuss the "Financial Inclusion and Development Functions" of RBI under Reserve Bank of India Act, 1934.

The mushrooming of unauthorized and unregulated money lenders in the financial system of the country necessitated the RBI to do something more than what has been provided in the Rule Books. Financial literacy or financial inclusion, though, not explicitly expressed in the RBI Act, 1934, or the Banking Regulation Act, 1949, sub-section (16) of Section 17 of the RBI Act, 1934, enables RBI to do all such matters and things as may be incidental to or consequential to the exercise of its powers or the discharge of its duties under the Act. Further, India being a country with significant illiteracy, there remains an obligation on the part of the 'State' to educate the people and also to include them into the organized financial system of the country to get the benefits of professional banking system of the country. The amendment to the Banking Regulation, 1949, inserting Section 26A, which provides for establishment of Depositor Education and Awareness Fund, is a step towards achieving this objective, which makes it amply clear that the statute casts a responsibility on the RBI to focus towards achieving financial literacy in the country. Section 26A provides that the Fund shall be utilised for promotion of depositors' interests and for such other purposes which may be necessary for the promotion of depositors' interests as may be specified by the RBI from time to time. Not only has the BR Act, 1949, even the RBI Act, 1934, mandated the RBI to maintain expert staff to study various aspects of rural credit and development, which emphasizes the premier role to be played by RBI in promoting financial literacy and financial inclusion among the citizens living even in the remote areas of the country.