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What are the Core Objectives of Financial Policy for any country? Present Context

A) Financial inclusion
The definition of financial inclusion (FI) varies from country to country depending on national objectives, but it is commonly understood as a way to provide financial services to those who do not have them. FI embraces three core elements: access, usage and quality of financial services. The GPFI has defined FI as “a state in which all working age adults have effective access to credit, savings, payments, and insurance from formal service providers.”3 Financial inclusion allows the unbanked and underbanked segments of society to join the formal financial system, which ultimately helps to alleviate poverty, promote job security, security and improve livelihoods and advance social empowerment.

B) Financial stability
The South African Reserve Bank has defined financial stability as the smooth operation of a system of financial intermediation between households, firms and the government through a range of financial institutions. FI and FS are not ends in themselves, but rather facilitate sustainable and balanced economic growth. Various research studies and surveys4 have shown that financial inclusion plays an important role in achieving financial stability if policymakers can effectively apply the principle of proportionality, which balances risks and benefits against the costs of regulation and supervision while maximizing results. The South African Reserve Bank has supported this approach with seven guidance statements,5 and the State Bank of Pakistan has offered six I-SIP propositions6 that ease the design and implementation of policy interventions by identifying, managing and optimizing the linkages among financial inclusion, financial stability, financial integrity and consumer protection.

C) Financial Integrity
It means understanding the true impact of your economic interactions, and having that impact reflect your true intentions.

D) Consumer Protection
Consumer protection is a group of laws and organizations designed to ensure the rights of consumers as well as fair trade, competition and accurate information in the marketplace. The laws are designed to prevent businesses that engage in fraud or specified unfair practices from gaining an advantage over competitors. They may also provide additional protection for those most vulnerable in society. Consumer protection laws are a form of government regulation, which aim to protect the rights of consumers. For example, a government may require businesses to disclose detailed information about products—particularly in areas where safety or public health is an issue, such as food. Consumer protection is linked to the idea of consumer rights, and to the formation of consumer organizations, which help consumers make better choices in the marketplace and get help with consumer complaints.

Note: These are not my original works but compiled from different sources such as below:


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