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Abstract
Financial inclusion is a supply of banking services at an affordable cost to the vast sections of disadvantaged and low-income groups. It has become the buzzword in financial circles; but it still has a long way to go. The results of study conducted in selected slums of Punjab to gauge the nature of financial inclusion, provide valuable insights and bust certain myths about financial inclusion, particularly among the urban slum-dwellers. Out of total 400 households, 44 per cent have not any bank account. Only 49 (31 per cent) households out of 158 are saving money in banks. The valuable insight is that only two respondents know about the rate of interest earned by them on their savings. No household has taken loan from the commercial Banks, because commercial banks demand security and these households don’t have any collateral that would be required as security for the loans. This bust the myth about banking practices in urban area.