Financial Inclusion and Statistics

According to World Bank’s Global Financial Index Report, 2017:

  1. 80% of the Indian population has access to formal financial services.
  2. 42% of the Indian population has used their bank accounts in the last 6 months.
  3. Only 7% of the Indian population has access to institutional credit.
  4. 32% of the Indian population has accessed credit through informal sources such as unregulated lenders, relatives and friends.

Financial Inclusion and Sustainable Development Goals

While financial inclusion is not a United Nations Sustainable Development Goal (SDG), it is an enabler of other seven of the seventeen development goals. These include:

SDG 1

Eradicating poverty

SDG 8

Promoting economic growth and jobs

SDG 2

Ending hunger, achieving food security and promoting sustainable agriculture

SDG 9

Supporting industry, innovation, and infrastructure

SDG 5

Achieving gender equality and economic empowerment of women

SDG 10

Reducing inequality

Financial Inclusion and India

Financial inclusion is important to India because:

1. Financial institutions provide a platform to protect against life shocks
Savings and insurance gives people a platform to secure their income and protect themselves against life shocks and provides people with means to meet predictable life expenses like education and marriage.

2. Financial institutions provide a platform to access credit
Access to capital through formal credit avenues reduces dependence on usurious informal lenders and social networks for credit. Usage of bank accounts fuels access to formal credit and this credit is essential for not just income generation, but also to meet consumption needs.

3. Financial institutions help plug gaps and leaks in public subsidies and welfare programmes
Welfare schemes in India see significant leakages. While this money meanders through large system of government bureaucracy much of it is widely believed to leak and is unable to reach the intended parties. Direct cash transfers to beneficiaries through their bank accounts is an important solution to help curb these leakages and ensure that the funds reach their intended beneficiaries.

Our Experiences

Financial Inclusion

Financial Inclusion and Statistics

According to World Bank’s Global Financial Index Report, 2017:

  1. 80% of the Indian population has access to formal financial services.
  2. 42% of the Indian population has used their bank accounts in the last 6 months.
  3. Only 7% of the Indian population has access to institutional credit.
  4. 32% of the Indian population has accessed credit through informal sources such as unregulated lenders, relatives and friends.

Financial Inclusion and Sustainable Development Goals

While financial inclusion is not a United Nations Sustainable Development Goal (SDG), it is an enabler of other seven of the seventeen development goals. These include:

SDG 1

Eradicating poverty

SDG 2

Ending hunger, achieving food security and promoting sustainable agriculture

SDG 5

Achieving gender equality and economic empowerment of women

SDG 8

Promoting economic growth and jobs

SDG 9

Supporting industry, innovation, and infrastructure

SDG 10

Reducing inequality

Financial Inclusion and India

Financial inclusion is important to India because:

1. Financial institutions provide a platform to protect against life shocks
Savings and insurance gives people a platform to secure their income and protect themselves against life shocks and provides people with means to meet predictable life expenses like education and marriage.

2. Financial institutions provide a platform to access credit
Access to capital through formal credit avenues reduces dependence on usurious informal lenders and social networks for credit. Usage of bank accounts fuels access to formal credit and this credit is essential for not just income generation, but also to meet consumption needs.

3. Financial institutions help plug gaps and leaks in public subsidies and welfare programmes
Welfare schemes in India see significant leakages. While this money meanders through large system of government bureaucracy much of it is widely believed to leak and is unable to reach the intended parties. Direct cash transfers to beneficiaries through their bank accounts is an important solution to help curb these leakages and ensure that the funds reach their intended beneficiaries.

Our Experiences

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