Only 30% of the bank branches operate in the rural areas that house 72.2% of the country’s population. Further, rural India accounts for just 9% of total deposits, 7% of total credit, 10% of life insurance and 0.6% of non-life business. There is therefore an urgent need to fast-track financial inclusion, he said, adding that the various technological and financial services and initiatives need to be dovetailed for this.

Even as FMCGs have penetrated rural markets in a major way and there are over 600 mobile subscribers around the country, only 40% of the population still has holds bank accounts. So, financial inclusion remains a study in contrast to the advancements that have taken place in many business sectors.

The situation calls for a shift in the mindset of the large segment of society toward accessing banking services, especially in rural India. the priority sector lending that is mandated on banks has somehow not delivered the expected results in terms of financial inclusion. The big change, would come about with the adoption of tailormade solutions, such as, use of regional languages in banking transactions.

panchayats across the country being connected with broadband services, technology can be better used to further financial inclusion in the rural areas. At the same time, due attention is required to ensure that the banking services are safe, secure and affordable. Importantly, the benefits need to be visible to the larger populace.

The effort for financial inclusion should go beyond creating no-frills accounts that largely remain “dead accounts” and instead link up the financial inclusion initiative with the economic activities of the stakeholders.

2.5 lakh common service centres are being set up across the country through which people would be able to access various financial services.

Only 30% of the bank branches operate in the rural areas that house 72.2% of the country’s population. Further, rural India accounts for just 9% of total deposits, 7% of total credit, 10% of life insurance and 0.6% of non-life business. There is therefore an urgent need to fast-track financial inclusion.  the various technological and financial services and initiatives need to be dovetailed for this.