Access of finance by the poor and vulnerable group is a prerequisite for poverty alleviation and development. However, a large section of the world population is excluded from the financial market. In India half of the poor are financially excluded from the banking sector of the country. Financial inclusion or inclusive financing is the delivery of financial services at an affordable cost, to vast section of disadvantaged and low income segments of society. Thus financial inclusion begins the next revolution of growth and prosperity. The theme of the paper is to discuss the current status of financial inclusion in India and the importance of financial inclusion in a developing country like India. The study also discusses the achievements of Financial Inclusion Plan in first phase and the forthcoming plan of RBI for the second phase of financial inclusion.