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Economy
Mahesh

08/07/22 21:49 PM IST

India still among countries with poor access to banking

In News 
  • India is among seven countries home to half the world’s 1.4 billion adults without access to formal banking, a recent World Bank report has flagged.
Major Highlights 
  • Globally, in 2021, 76 per cent of adults had an account at a bank or regulated institution such as a credit union, microfinance institution, or a mobile money service provider
  •  Mobile money has become an important enabler of financial inclusion—especially for women e.g., in Sub-Saharan Africa.
  • Despite promising growth in account ownership and use, about half of adults in developing economies are worried about at least one area of financial stress e.g., an emergency fund for health.
  • About two-thirds of unbanked adults said that if they opened an account (excluding mobile money) at a financial institution, they could not use it without help.
Findings of India 
  • Low access to formal banking in India and there is a lack of trust.
  • Aadhar contributed to account ownership in about 80% of adults (from 35% in 2011)
  •  Transitioning from cash to biometric smart cards has reduced leakage by 47% in pension payments.
Source- Down To Earth 

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