India tops list of nations with most favourable environment for financial inclusion; these are 4 key drivers

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Published: November 1, 2019 2:01:30 PM

Amid improving the environment for financial inclusion globally, India tops the list of nations with the most favourable conditions, a global report said.

post office and these banks are offering more interest than SBI on savings bank account, idfc first bank, bandhan bankSouth Africa, India, Mexico, Tanzania, and Uruguay were among the top nations that safeguard e-money via some sort of deposit insurance or protection.

Amid improving the environment for financial inclusion globally, India tops the list of nations with the most favourable conditions, a global report said. Colombia, Peru, Uruguay, and Mexico have the most conducive conditions for inclusive finance, according to The Economist Intelligence Unit’s 2019 Global Microscope on Financial Inclusion report. The report identified — allowing non-banks to issue e-money, presence of financial service agents, proportionate customer due diligence and effective financial consumer protection — as four basic enablers for the overall framework for promoting digital financial inclusion.

Colombia, India, Jamaica, and Uruguay are the four nations that scored perfectly across all four parameters. South Africa, India, Mexico, Tanzania, and Uruguay were among the top nations that safeguard e-money via some sort of deposit insurance or protection.

Also read: Modi govt implements most of the stimulus measures but economic recovery is a far cry

Financial inclusion is where individuals and businesses have access to useful and affordable financial products and services that meet their needs that are delivered in a responsible and sustainable way. Financial inclusion is defined as the availability and equality of opportunities to access financial services. Modi government’s Pradhan Mantri Jan Dhan Yojana is an example of the national mission on financial inclusion which has an integrated approach to bring about comprehensive financial inclusion and provide banking services to all households in the country. The scheme ensures access to a range of financial services like availability of basic savings bank account, access to need based credit, remittances facility, insurance and pension.

Meanwhile, the Reserve Bank has prepared a draft National Strategy for Financial Inclusion to deepen financial services’ coverage in the country. The long-awaited strategy is expected to be finalised in 2019 and will cover a five-year period.

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