WASHINGTON: India has 19 crore adults without a bank account despite the success of the ambitious Jan Dhan Yojana, making it the world’s second largest unbanked population after that of China, the World Bank said today.
Besides, almost half of the bank accounts remained inactive in the past year, the multilateral financial institution said in a report, even as it lauded the Indian government’s financial inclusion scheme, the Jan Dhan Yojana, for bringing in additional 31 crore Indians into formal banking system by March 2018.
It also said the country’s adult population with a bank account has more than doubled to 80 per cent since 2011. The Jan Dhan Yojana was launched by the Modi government in 2014.
According to the latest Global Findex Database released by the World Bank on the sidelines of the annual Spring meeting of the International Monetary Fund and the World Bank, 11 per cent of the world’s unbanked adults are in India.
Globally, 69 per cent of adults 3.8 billion people now have an account at a bank or mobile money provider, a crucial step in escaping poverty.
This is up from 62 per cent in 2014 and just 51 per cent in 2011. From 2014 to 2017, 515 million adults obtained an account, and 1.2 billion have done so since 2011, according to the Global Findex database.
The bank said China and India, despite having relatively high account ownership, claim large shares of the global unbanked population because of their sheer size.
Home to 225 million adults without an account, China has the world’s largest unbanked population, followed by India (190 million or 19 crore), Pakistan (100 million), and Indonesia (95 million).