Skip to main content

World Bank: India's 48% bank accounts inactive, thanks to Modi's Jan Dhan, twice that of developing countries

By Rajiv Shah
India may have sharply increased the number of bank accounts following Prime Minister Narendra Modi coming to power. However, regrettably, India has the largest share of inactive accounts, too. A just-released World Bank survey, which provides this crucial detail alongside several others, says, "Account owners with an inactive account varies across economies, but it is especially high In India."
Saying that the share of inactive accounts in India is 48 percent, "the highest in the world and about twice the average of 25 percent for developing economies", the World Bank seeks to blame Modi's policies for this. Titled "The Global Findex Database 2017: Measuring Financial Inclusion and the Fin-tech Revolution", the survey report says, "Part of the explanation might be India’s Jan Dhan Yojana scheme, developed by the government to increase account ownership."
Authored by Demirgüç-Kunt, Asli, Leora Klapper, Dorothe Singer, Saniya Ansar, and Jake Hess, further referring to the Jan Dhan scheme, the report states, "Launched in August 2014, the programme had brought an additional 310 million Indians into the formal banking system by March 2018", but laments many of them "might not yet have had an opportunity to use their new account."
As against India's 48 percent inactive accounts, as observed over the last 12 months, the report states, "In Afghanistan, Nepal and Sri Lanka about a third of account owners have an inactive account, while in Bangladesh 21 percent do. And Pakistan has a rate of just 13 percent, though it also has a low rate of account ownership compared with other economies in the region." It adds, "In high-income economies only 4 percent of account owners have an inactive account."
The World Bank’s triennial Global Findex report, as the study is identified alternatively, it is based on a survey of more than 150,000 representative individuals, claiming to provide a bird's-eye view of patterns and regularities in data pertaining to finance and financial inclusion – such as saving behavior, use of mobile money, and preferred modes of sending and receiving remittances – in 140 economies.
Pointing towards the existence of gender gap in inactive accounts, the report says, "In developing economies female account owners are on average 5 percentage points more likely than male account owners to have an inactive account. In India, however, this gender gap is about twice as large: while 54 percent of women with an account reported having made no deposit or withdrawal in the past year, only 43 percent of men with an account did so."
The report also points out that in developing economies "76 percent of adults with an inactive account have a mobile phone, including 66 percent in India", though adding, "This represents an opportunity for expanding the use of accounts through digital technology."
According to the report, "Indeed, having an account does not necessarily imply that people save at all. Globally, 42 percent of account owners reported not having saved any money in the past year. In high-income economies 26 percent of account owners reported not having saved any money. And in Brazil, India, Russia, and Turkey — all economies where about 70 percent or more of adults have an account — about 60 percent reported not saving at all."

Comments

Hari Desai said…
Unfortunately, the opposition is unable to convey failures of Modi govt and Modi sena talks about 2022 showing new dreams.

TRENDING

Modi, Shah 'forget': Gandhi’s first Satyagraha was against citizenship law of South Africa

By Nachiketa Desai*
Hindu fanatic Nathuram Godse assassinated Mahatma Gandhi once on January 30, 1948 but his followers raising the war cry of ‘Jai Sriram’ are killing the Mahatma every day. In his home state of Gujarat, Gandhiji was killed a thousand times in 2002 when over 2,000 Muslims were butchered, their women raped, homes and shops plundered and set on fire and even unborn babies ripped out of the wombs of their mothers.

Union Budget 'moves away' from Right to Education, 1.3 lakh schools closed down

By Dr Aparajita Sharma*
It was a shocking reply by the Union human resource development minister to a question raised in Parliament on closure of schools in a country where lakhs of children are still out of school. On December 2, the minister, Ramesh Pokhriyal ‘Nishank’, told Lok Sabha that the NITI Aayog’s education project, Sath-E, has led to 35,996 schools of different levels being merged in Madhya Pradesh, 4,312 in Jharkhand and 1,803 in Odisha. NITI Aayog is the Central Government’s policy think-tank.

CAA-NPR-NRC will 'target' 99% homeless, who are without birth certificates: NCU

Counterview Desk
Claiming to base on a survey in five states (Andhra Pradesh, Bihar, Jharkhand, Maharashtra and Tamil Nadu), which finds that over 99% of the homeless people do not have birth certificates, a civil rights organization which networks activists, researchers, urban practioners, lawyers, informal sector workers, has claimed that the Citizenship Amendment Act (CAA), as also the proposed National Register of Citizens (NRC) and the National Population Register (NPR), are likely to adversely impact this section the most.

Modi 'warned': Will not remain silent when women are labelled terrorists and traitors

Counterview Desk
As many as 13 women's rights organizations and 162 individuals have issued an open letter to Prime Minister Narendra Modi stating that in the light of hate speeches during Delhi elections, especially directed against women, it is his "Constitutional duty to protect all citizens" and tell his partymen "to fight the elections in a manner that upholds the Constitution, not one that increases the fear and insecurity among women."

Savarkar 'criminally betrayed' Netaji and his INA by siding with the British rulers

By Shamsul Islam*
RSS-BJP rulers of India have been trying to show off as great fans of Netaji. But Indians must know what role ideological parents of today's RSS/BJP played against Netaji and Indian National Army (INA). The Hindu Mahasabha and RSS which always had prominent lawyers on their rolls made no attempt to defend the INA accused at Red Fort trials.

Savarkar in Ahmedabad 'declared' two-nation theory in 1937, Jinnah followed 3 years later

By Our Representative
One of the top freedom fighters whom BJP and Prime Minister Narendra Modi revere the most, Vinayak Damodar Savarkar, was also a great supporter of the two nation theory for India, one for Hindus another for Muslims, claims a new expose on the man who is also known to be the original proponent of the concept of Hindutva.

Mystery around Gujarat PSU 'transfer' of Rs 250 crore to Canadian firm Karnalyte

By AK Luke, IAS (Retd)*
While returning from a Board meeting of the Oil India Limited (OIL) in Ahmedabad some time in 2012, two officers of the Gujarat State Fertilizers and Chemicals Ltd (GSFC), Nanavaty and Patel,  saw me off at the airport. They said they were proceeding to Canada in connection with a project GSFC had entered into with a company there. As we were running late, I hastily wished them the best.

Anti-CAA: Mallika Sarabhai joins students, faculty to protest dy CM's 'divisive' talk

By Our Representative
Taking strong exception to deputy chief minister Nitin Patel’s statement against those protesting against the Citizenship Amendment Act (CAA) and the proposed National Register of Citizens (NRC), well-known danseuse Mallika Sarabhai has joined tens of activists and students and faculty of Gujarat University, CEPT University, Indian Institute of Management-Ahmedabad, Gujarat Vidyapeeth and Nirma University to say that they are seeking “azadi” from the fascist and communal forces of the country.

Population control? 10% Indian couples want to delay next pregnancy, but fail

Counterview Desk
Shireen Jejeebhoy, director at Aksha Centre for Equity and Wellbeing, previously senior associate at the Population Council, India, argues that the debate on the country's population was fuelled by Prime Minister Narendra Modi’s Independence Day address to the nation, where he drew attention to “concern” about the challenges posed by this ‘exploding’ population growth, needs to centre around the promotion of rights and education, instead of the language of explosion and the threat of coercion that this term implies.