Financial Inclusion Metrics – SBI Report
According to a report by State Bank of India (SBI), India has now overtaken China in the financial inclusion scenario/Financial Inclusion Metrics.
Financial inclusion means individuals and businesses have access to useful and affordable financial products and services that meet their needs.
Key findings of SBI’s recent report
- The number of bank branches per one lakh adults in India increased from 13.6 in 2015 to 14.7 in 2020. This is more than Germany, China and South Africa.
- Mobile and Internet banking transactions per thousand adults increased to 13,615 in the year 2019 from 183 in the year 2015.
- There has been a clear decline in crimes in the states which have high balance in Pradhan Mantri Jan-Dhan Yojana (PMUDY) accounts.
- There has been a statistically significant and economically significant decline in the consumption of narcotic substances such as alcohol and tobacco products in such states.
- The Banking Correspondent (BC) model has gradually eliminated the need for setting up physical branches.
- It may be noted that at present the number of banking outlets in villages has increased from 34,174 in March 2010 to 12.4 lakh in December 2020.
- PMJDY is a national mission launched for financial inclusion. It aims to ensure affordable access to financial services i.e. a basic savings and deposit account, remittance, credit, insurance and pension.
- Under this scheme, a Basic Savings Bank Deposit Account can be opened in any bank branch or Business Correspondent (BC) outlet by individuals who do not have a bank account.
Source- The Hindu