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

What's Bill Gates up to? Have 'irregularities' found in funding HPV vaccine trials faded?

By Colin Gonsalves*  After having read the 72nd report of the Department Related Parliamentary Standing Committee on alleged irregularities in the conduct of studies using HPV vaccines by PATH in India, it was startling to see Bill Gates bobbing his head up and down and smiling ingratiatingly on prime time television while the Prime Minister lectured him in Hindi on his plans for the country. 

Muted profit margins, moderate increase in costs and sales: IIM-A survey of 1000 cos

By Our Representative  The Indian Institute of Management-Ahmedabad’s (IIM-A's) latest Business Inflation Expectations Survey (BIES) has said that the cost perceptions data obtained from India’s business executives suggests that there is “mild increase in cost pressures”.

Magnetic, stunning, Protima Bedi 'exposed' malice of sexual repression in society

By Harsh Thakor*  Protima Bedi was born to a baniya businessman and a Bengali mother as Protima Gupta in Delhi in 1949. Her father was a small-time trader, who was thrown out of his family for marrying a dark Bengali women. The theme of her early life was to rebel against traditional bondage. It was extraordinary how Protima underwent a metamorphosis from a conventional convent-educated girl into a freak. On October 12th was her 75th birthday; earlier this year, on August 18th it was her 25th death anniversary.

Govt putting India's professionals, skilled, unskilled labour 'at mercy of' big business

By Thomas Franco, Dinesh Abrol*  As it is impossible to refute the report of the International Labour Organisation, Chief Economic Advisor Anantha Nageswaran recently said that the government cannot solve all social, economic problems like unemployment and social security. He blamed the youth for not acquiring enough skills to get employment. Then can’t the people ask, ‘Why do we have a government? Is it not the government’s responsibility to provide adequate employment to its citizens?’

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah*   The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual. 

IMA vs Ramdev: Why what's good or bad for goose should be good or bad for gander

By Dr Amitav Banerjee, MD* Baba Ramdev and his associate Balkrishna faced the wrath of the Supreme Court for their propaganda about their Ayurvedic products and belittling mainstream medicine. Baba Ramdev had to apologize in court. His apology was not accepted and he may face the contempt of court with harsher punishment. The Supreme Court acted on a public interest litigation (PIL) moved by the Indian Medical Association (IMA).

'Flawed' argument: Gandhi had minimal role, naval mutinies alone led to Independence

Counterview Desk Reacting to a Counterview  story , "Rewiring history? Bose, not Gandhi, was real Father of Nation: British PM Attlee 'cited'" (January 26, 2016), an avid reader has forwarded  reaction  in the form of a  link , which carries the article "Did Atlee say Gandhi had minimal role in Independence? #FactCheck", published in the site satyagrahis.in. The satyagraha.in article seeks to debunk the view, reported in the Counterview story, taken by retired army officer GD Bakshi in his book, “Bose: An Indian Samurai”, which claims that Gandhiji had a minimal role to play in India's freedom struggle, and that it was Netaji who played the crucial role. We reproduce the satyagraha.in article here. Text: Nowadays it is said by many MK Gandhi critics that Clement Atlee made a statement in which he said Gandhi has ‘minimal’ role in India's independence and gave credit to naval mutinies and with this statement, they concluded the whole freedom struggle.

Youth as game changers in Lok Sabha polls? Young voter registration 'is so very low'

By Dr Mansee Bal Bhargava*  Young voters will be the game changers in 2024. Do they realise this? Does it matter to them? If it does, what they should/must vote for? India’s population of nearly 1.3 billion has about one-fifth 19.1% as youth. With 66% of its population (808 million) below the age of 35, India has the world's largest youth population. Among them, less than 40% of those who turned 18 or 19 have registered themselves for 2024 election. According to the Election Commission of India (ECI), just above 1.8 crore new voters (18-and 19-year-olds) are on the electoral rolls/registration out of the total projected 4.9 crore new voters in this age group.

Indians witnessing 'regression to Hindutva politics' under Modi ahead of elections

By Bhabani Shankar Nayak*  The forthcoming general election in India, scheduled from April 19, 2024, to June 1, 2024, to elect the 543 members of the 18th Lok Sabha and the new Government of India, carries immense significance for the preservation of India's identity as a liberal, secular, and constitutional democracy.

An equine landmark, Cheltenham Gold Cup centenary 'epitomized' heights unparalleled

By Harsh Thakor*  The Cheltenham Gold Cup  is the most prestigious jumping race in the British Isles Steeplechasing calendar and the Cheltenham festival, a cynosure of every English and Irish racegoer. Few sporting events match or surpass the sheer intensity, competitiveness and joy that radiates its legacy. Few moments are more pulsating than witnessing a Gold Cup or a Cheltenham festival. In addition to that the race is run amidst the background of an evergreen English countryside, encircled by hills and pastures, giving a sensation of a paradise or heavenly location.