Inclusive Finance India Report 2014

This report surveys the financial services sector in India through the lens of inclusion. It brings together varying perspectives, policy prescriptions, and practices around increasing access to finance. It provides a detailed exposition of the plans of banks, looks closer into innovations, and critically examines the relevant policies with respect to financial inclusion. The report also examines how business correspondents (BCs) and technology-led banking models can help further financial inclusion and evaluates the contribution of microfinance toward the same. Key highlights include:

• Numbers of BCs have increased from 34,532 at the end of March 2010 to 337,638 at the end of March 2014;
• More than 60 million basic savings bank deposit accounts (BSBDAs) were added during the 2013–14 period taking the total number of BSBDAs to 243 million;
• Presence of MFIs has become widespread across the regions in the country, though they are still concentrated in certain states;
• Banks need to provide diverse range of products and services through their customer service point (CSP) platforms to ensure revenues and sustainability and viability of CSPs;
• Promotion of multiple tools, strategies, and institutions has come to be the central focus of the Reserve Bank of India’s recent policy pronouncements.