The true picture of financial inclusion

Many new bank accounts have been opened, but the report points out that 40% of accounts did not see any deposits or withdrawals in 2014

The two accompanying charts, culled from the Reserve Bank of India’s (RBI’s) report on financial inclusion, show the true picture of financial inclusion in the country. Chart 1 shows the increasing importance of moneylenders in the rural economy. The data is till 2012 but the report says, “the Committee is of the view that this scenario may not have changed materially in the last couple of years.” Chart 2 shows how the poorest borrowers, those with smaller landholdings, have to rely more on moneylenders. Sure, many new bank accounts have been opened, but the report points out that 40% of accounts did not see any deposits or withdrawals in 2014

Source- Livemint

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