The State Bank of India (SBI) has released its Financial Inclusion metrics report. It has been prepared by Chief Economic Advisor of SBI group, Soumya Kanti Ghosh.
Key Findings of the report
- The report states that, financial inclusion policies have a multiplier effect on economic growth, income inequality and reducing poverty. It is also conducive for financial stability.
- Number of bank branches per 100000 adults in India have increased to 14.7 in 2020 as compared to 13.6 in 2015. This increase was the result of Pradhan Mantri Jan-Dhan Yojana, digital infrastructure etc.
- This number is higher as compared to Germany, China and South Africa.
- Internet banking transactions per 1,000 adults have boosted to 13,615 in 2019 as opposed to 183 in 2015.
- States having higher Pradhan Mantri Jan-Dhan Yojana (PMJDY) accounts balances have reported decline in crime.
- States where more PMJDY accounts were opened, reported a significant and economically meaningful drop in consumption of intoxicants like alcohol and tobacco products.
- Banking Correspondent (BC) model in India has been enabled to provide a defined range of banking services at a lower cost. Thus, BC model is instrumental in promoting financial inclusion.
- Number of ‘Banking Outlets in Villages – BCs’ has increased from 34,174 in March 2010 to 12.4 lakh in December 2020.
Pradhan Mantri Jan-Dhan Yojana (PMJDY)
PMJDY is National Mission for Financial Inclusion. It was launched on August 28, 2014 to ensure access to financial services like Banking or Savings & Deposit Accounts, Credit, Insurance, Remittance and Pension in an affordable manner.