India’s financial inclusion efforts have won recognition from the World Bank, as their data indicates 55% of new bank accounts opened globally are from India, financial services secretary Rajiv Kumar said on Saturday.
“World Bank Global Findex Report recognises India’s Financial Inclusion efforts. Of the 51.4 crore bank accounts opened from 2014-17 globally, a whopping 55% from India” he said in a tweet.
The World Bank report released on Friday cited the success of the Jan Dhan Yojana — the government’s initiative aimed at bringing masses within the formal banking system.
The total number of Jan Dhan account holders has risen to 31.44 crore in March, 2018, from 28.17 crore a year earlier, according to the government data.
As per the World Bank Global Findex Report, the percentage of adult bank account holders in India increased to 80% in 2017 as compared to 53% in 2014 and 35% in 2011, he said.
Women at the forefront, he said, highlights a sharp fall in gender gap from 20% in 2014 to 6% in 2017 in bank accounts due to Government efforts.
The report acknowledges impact of government policy in reducing gaps in bank account ownership between rich and poor to 5% in 2017, down from 15% in 2014, he added. The Global Findex Report, 2017 released by the World Bank noted the rapid increase in financial inclusion that has taken place in India and how the number of account holders in the country has risen from 35% of the adults in 2011 and 53% in 2014 to 80 % in 2017.
This, it states, is comparable to 80% of adults in China who have an account. The Report also attributes this progress as being driven by the Jan Dhan Yojana policy which has used biometric ID to expand access to financial services.
It may be pertinent to note that the Report sources its data largely from surveys that were conducted in the summer of 2017.