ID :
13612
Thu, 07/24/2008 - 10:14
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http://m.oananews.org//node/13612
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India ranks low in financial inclusion, says ICRIER
New Delhi, July 24 (PTI) India has been ranked poorly, even below African countries like Kenya and Moracco, in the first-ever index of financial inclusion prepared by city -based think-tank I.C.R.I.E.R. to find out the extent of reachof banking services in 100 country's of the world.
India has been placed at the 50th spot, much above Russia but below China, in the index of financial inclusion (I.F.I.) prepared by the Indian Council for Research on InternationalEconomic Relations (I.C.R.I.E.R.).
The financial inclusion index, which gives the extent of availability and usage of banking services in key nations of the world, is based on indicators like number of bank accounts per thousand adults, number of ATMs and bank branched permillion people and amount of bank credit and deposit.
The index assumes significance as one of the major goals of the 11th Five-Year Plan is to work for financial inclusion and extend the reach of microfinance to meet credit needs of approximately 80 percent of the population not directlycovered by banks.
Spain has occupied the top position in the I.F.I., which is based on 2004 data, followed by Canada and Portugal, while countries including Nepal, Zimbabwe and Bostwana are at thebottom of the list.
Among the important countries, Germany has been placed at4th position, the UK 17th, USA 21st and Japan 22nd.
Referring to India, the I.C.R.I.E.R. study said inspite of low density of bank branches, the usage of banking system in terms of volume of credit and deposit seems to bemoderately high.
The study also pointed out that number of bank branches per one lakh adults in India was 9.4, compared to 14.6 in Malaysia indicating the scope of expansion of banking servicesin the country.
Similarly, the report pointed out that domestic deposit as percentage of GDP was 54.9 percent, against 123.9 percentin Malaysia.
The index developed by the the think-tank "can be used to compare levels of financial inclusion across economies at a particular time point. It can also be used to monitor the progress initiatives for financial inclusion over a period oftime", said I.C.R.I.E.R. Director and CEO Rajiv Kumar.
The think-tank would also be developing a similar India -specific index that is expected to provide insightful information on the features of financial inclusion in thecountry, he added.
The government in order to spread the reach of banking facilities to vulnerable sections of society had set up a committee on financial inclusion in India, headed by Chairmanof the Prime Minister's Economic Advisory Council C.
Rangarajan.
The committee has defined financial inclusion as the process of ensuring access to financial services and timely and adequate availability of credit by weaker sections and low income group at an affordable cost. PTI SHS SHN
India has been placed at the 50th spot, much above Russia but below China, in the index of financial inclusion (I.F.I.) prepared by the Indian Council for Research on InternationalEconomic Relations (I.C.R.I.E.R.).
The financial inclusion index, which gives the extent of availability and usage of banking services in key nations of the world, is based on indicators like number of bank accounts per thousand adults, number of ATMs and bank branched permillion people and amount of bank credit and deposit.
The index assumes significance as one of the major goals of the 11th Five-Year Plan is to work for financial inclusion and extend the reach of microfinance to meet credit needs of approximately 80 percent of the population not directlycovered by banks.
Spain has occupied the top position in the I.F.I., which is based on 2004 data, followed by Canada and Portugal, while countries including Nepal, Zimbabwe and Bostwana are at thebottom of the list.
Among the important countries, Germany has been placed at4th position, the UK 17th, USA 21st and Japan 22nd.
Referring to India, the I.C.R.I.E.R. study said inspite of low density of bank branches, the usage of banking system in terms of volume of credit and deposit seems to bemoderately high.
The study also pointed out that number of bank branches per one lakh adults in India was 9.4, compared to 14.6 in Malaysia indicating the scope of expansion of banking servicesin the country.
Similarly, the report pointed out that domestic deposit as percentage of GDP was 54.9 percent, against 123.9 percentin Malaysia.
The index developed by the the think-tank "can be used to compare levels of financial inclusion across economies at a particular time point. It can also be used to monitor the progress initiatives for financial inclusion over a period oftime", said I.C.R.I.E.R. Director and CEO Rajiv Kumar.
The think-tank would also be developing a similar India -specific index that is expected to provide insightful information on the features of financial inclusion in thecountry, he added.
The government in order to spread the reach of banking facilities to vulnerable sections of society had set up a committee on financial inclusion in India, headed by Chairmanof the Prime Minister's Economic Advisory Council C.
Rangarajan.
The committee has defined financial inclusion as the process of ensuring access to financial services and timely and adequate availability of credit by weaker sections and low income group at an affordable cost. PTI SHS SHN
