Current status of financial inclusion in india

1. Current Status
of
Financial Inclusion in India
Presented By :
Ashwani Kumar
( Research Scholar)

2. Introduction
Financial inclusion is the delivery of Financial
Services at affordable cost to sections of
disadvantaged and low-income segments of
society, go against to financial exclusion where
those services are not available or affordable.

3. Financial Inclusion Lifecycle
Financial
Literacy
• Step 1
Opening a
Bank
Account
• Step 2
Delivering
Financial
Services
• Step 3

4. Degree of Financial Exclusion
Source: NABARD

5. Why Are we Talking of
Financial Inclusion Now?
Focus on Inclusive Growth
Banking Technology has arrived
Realisation that Poor is bankable

6. Financial Inclusion – Who are these People?
Helpless section in rural and urban areas
like, Farmers, small vendors, etc.
Agricultural and Industrial Labourers
People engaged in un-organised sectors
Unemployed
Women
Children
Old people
Physically challenged people

7. Number of Accounts Opened under
PMJDY AS ON 06- 09-2017
No. of Accounts (in Crore) Percentage
Public Sector Bank 24.35 80.77
RRBs 4.83 16.02
Private Banks 0.97 3.21
Total 30.15
(Source: www.pmjdy.gov.in)
Approximately 25% of Indian Population cover by this scheme.

8. Degree of financial inclusion in India vis-a-vis other
emerging and advanced economies
Indicators of financial inclusion
As of 2014
Advanced
economies
Emerging
economies
India
Account at a financial institution (% age 15+) 95.85 67.88 52.75
Commercial bank branches
(per 100,000 adults)
33.57 19.41 11.38
Automated teller machines
(per 100,000 adults)
136.45 86.38 11.21
Debit card (% age 15+) 84.50 49.48 22.07
Source: World Bank (http://nipfp.org.in/blog/2016/11/30/demonetisation-under-incomplete-financial-
inclusion/)

9. Government of India Population Census 2011 ™As per
census 2011, only 58.7% of households are availing
banking services in the country. However, as compared
with previous census 2001, availing of banking services
increased significantly

10. Progress No frills / Basic Savings Banks Accounts
Source: RBI

11. No. of Basic Savings Bank Deposit Account
per thousand of population
Source: RBI

12. Impact of Financial Inclusion in Rural V/s Urban
Households cash Loans
Source: RBI

13. Use of Accounts in the past year
Source: RBI

14. Used an account to receive wages, rural
Source: RBI

15. Financial Inclusion – Why Have We Failed?
Absence of Technology
Absence of reach and coverage
Delivery Mechanism
Not having a Business model
Rich have no compassion for poor

16. Pre-requisites For The Success of
Financial Inclusion
 Appropriate Technology
 Appropriate and Efficient Delivery model
 Mainstream banks’ determination and
involvement
 Strong Collaboration among Banks,
Technical Service Provider, BC Services
 Involvement of all
 Especially the state administration at grass-root
level
 Liberalisation of BC model

17. Reference:
https://rbi.org.in/scripts/PublicationReportDetails.aspx?ID=836#c13
www.sa-dhan.net/.../National%20Conference%20PPTS/A%20K%20Srivastava.ppt.ppt
www.darpg.gov.in/sites/default/files/Financial_Inclusion_PNB.ppt
www.iibf.org.in/documents/financeinclusion_shilma.ppt
http://nipfp.org.in/blog/2016/11/30/demonetisation-under-incomplete-financial-
inclusion/
www.pmjdy.gov.in