India is now leading in financial inclusion metrics when compared with China, with mobile and internet banking transactions multiplying to 13,615 per thousand adults in 2020 from 183 in 2015.
The number of bank branches increased from 14.7 per lakh adults in 2020 to 13.6 in 2015. These records are higher than Germany, China, and South Africa, according to a report by State Bank of India economists.
What Is Financial Inclusion?
As per the World Bank, the term 'financial inclusion' refers to a situation where individuals and businesses are able to access affordable financial products and services efficiently.
An individual with access to a bank account for conducting transactions is the first step towards building this inclusive community.
States reporting financial inclusion by opening more bank accounts, educating masses on using digital services, and inculcating a sense of accountability also resulted in a decrease in criminal activities as well as in alcohol consumption and substance abuse.
The number of savings accounts increased. Also, the reason is an increase in digital transactions.
Bank Accounts Statistics
The central government's Prime Minister Jan Dhan Yojana (PMJDY) has been one of the primary reasons for rise in the number of bank deposit accounts.
About 43.7 crore restrained bank accounts opened with a deposit of Rs 1.46 lakh crore till 20 October 2021. Out of these, nearly two-thirds are active in rural and semi-urban areas. About 78% of these accounts are associated with state-owned banks, approximately 18.2 associated with regional rural banks, and 3% are associated with private banks.
Additionally, the number of banking outlets in villages/ banking correspondents (BCs) has increased from 34,174 in March 2010 to 12.4 lakh in December 2020 reported by The Times of India