Analyzing the progress and prospects of financial inclusion in India

Abstract

Taking data from Financial Access Survey, Global Findex and Reserve Bank of India bulletin, this paper tries to analyze the progress occurred and the future prospect of financial inclusion in India. Our analysis depicts that India has witnessed a quick progress in financial inclusion. Though there is long way to go to achieve the dream of universal financial inclusion, there is no doubt that tremendous progress has been achieved in the recent time. Specifically, after the implementation Pradhan Mantri Jan Dhan Yojana in August 2014, much improvement has happened in opening of bank deposit accounts. Similarly, the post‐dimerization period has seen a rapid growth of digital finance in India. Despite high growth of digital transaction, digital payment among the women, rural people, elderly people, and less educated people is much less than other groups of people. The provision of good digital infrastructure to the remote area, opening of more financial literacy centers and extension of credit to the marginalized people can help to fulfill the true essence of financial inclusion in India.

How financially inclusive the Asian’s are – an empirical analysis

“…Provision of microcredit through the formal financial institutions helps the poor to increase their banking habits, augment saving, smooth consumption and enhance their capability by investing on their non-income generating activities such as health, education, RAMJ 14,1 sanitation and other basic entitlements (Barik and Sharma, 2019). Research finding describes that the expansion of financial inclusion can raise the financial condition and can improve the standard of living of the poor and disadvantaged groups of people (Srijanani, 2012).…”

“…Reddy (Former Reserve Bank of India Governor) emphasised on the term to address the reduction of informal sources of finance and in ultimate put a brake to exclusion (Reddy, 2015). Including the excluded in the formal financial system enhances the efficiency of the service provider by reduction of costs and in turn providing a variety of services at a more affordable or simply cheaper price to its clients (Barik and Sharma, 2019). Increment in the clientele base also helps to stabilise the service provider, financial system and the economy which in turn strengthens the inherent capacity to absorb unexpected shocks.…”

Empowering Women Through Financial Inclusion: A Study of Urban Slum

“…As per RBI, 251 million account holders use mobile banking in 2018 and volume of transactions through mobile banking has crossed 3,047 billion in 2018-2019. The ongoing financial inclusion plans, such as PMJDY, PMSBY, and PMJJBY, have encouraged poor and marginalized Indians to open zero-parity ledger and avail insurance protection schemes at affordable rates (Barik & Sharma, 2019). These schemes have helped to top off financial inclusion gaps among various gathering of populace with 55 per cent expansion in women citizens' share.…”

“…Thus, the variable 'financial inclusion' is measured along these lines, that is, accessibility and ease of use of financial services for various group of individuals. The current data set in India shows that the number of bank account holders has risen to include around 80 per cent of adults under formal financial framework (Global Findex Report, 2017 (Barik & Sharma, 2019). These schemes have helped to top off financial inclusion gaps among various gathering of populace with 55 per cent expansion in women citizens' share.…”

What Role Does Financial Inclusion Play for Poverty Reduction? Empirical Evidence From The Indian States in the Post-Liberalization Era

“…Such policies are: the launching of Self-Help Groups (SHGs) in 1992 and linking it with individual's bank account, provision of Kisan Credit Card (KCC), opening of no-frill account, introduction of Know Your Customer (KYC) scheme, Direct Benefit Transfer (DBT) facility, Pradhan Mantri Jan-DhanYojana (Prime Minister's People Money Scheme), Mudra Yojana and the recent introduction of digital India programme. (see Barik and Sharma, 2019). The prime motto of all these financial inclusion policies was to provide easy and affordable financial services to the poor and marginalized communities so that they can overcome their economic hardship.…”