Every individual in today's world necessarily has to maintain a bank account in order to conduct financial transactions. Gone are those days, wherein only the working class people or the businessmen used to maintain an account in a bank. With the revolution of the banking sector and the introduction of new norms, anyone can open a bank account and operate it.
As per the recent data from the Global Findex Report, it highlights India's contribution to the global growth in financial inclusion.
The report says, that in India before three years, men were 20% points more likely than women to have an account. Today, India's gender gap has shrunk to 6% with the effort of a strong government push to increase account ownership through biometric identification cards. The data states that more than 50% of the nonaccount holders own a mobile phone.
The total number of Indian adults are transacting more through their bank accounts and are restricting the use of cash. In the year 2017, four-fifths of the Indian adults have opened a bank account as against 53% in the year 2014.
As per the report released by World Bank, Findex had launched a survey with funding from the Bill and Melinda Gates Foundation, which tracks the data on how adults save their money, borrow it, make payments and manage risk. The report states that there is a steep increase in financial inclusion, with an increasing total number of account holders in the country. The share was 35% of the adults in the year 2011.
"In India, the share of adults with an account has more than doubled since 2011, to 80%. An important factor driving this increase was a government policy launched in the year 2014 to boost account ownership among un-banked adults through biometric identification cards. This policy benefited traditionally excluded groups and helped ensure inclusive growth in account ownership. Between 2014 and 2017 account ownership in India rose by more than 30% points among women as well as among adults in the poorest 40% of households. Among men and among adults in the wealthiest 60% of households it increased by about 20% points".
The report recognized the availability of bank accounts, mobile connections, debit cards in India, which are cynical for the betterment of account usage in future.
The report also mentioned the success of Jan Dhan Yojana, the government's pet project which is aimed at bringing every Indian within the folds of a formal banking system. It further states that the total number of Jan Dhan account holders has gone up to 31.44 crores in March 2018, as per the government data.
The total number of savings and current account in the country has risen to 157.1 crores in March 2017, as against 122.3 crores before two years.
In India, a total of 42% of male account owners use digital payments, while just 29% of female account owners do digital payments.
In India, where 90% of unbanked adults reported having proof of identity issued by the national government, recent research suggests that government-provided biometric identification cards were among the factors enabling a rapid decline in the number of adults without an account.