Full financial inclusion can boost India’s GDP by 0.9%, says report
Wednesday, August 13, 2014
British brokerage Barclays today said returns from financial inclusion, in the form of savings through reduced leakages, better tax collection and improved savings, would be much higher than the cost incurred.
“Full financial inclusion will require a capital expenditure of USD 500 million and an additional USD 1.3 billion in recurring annual operational expenses.
“The recurring service cost is about 0.1 per cent of GDP or 0.05 per cent of deposits and loans in the banking system,” it said.
Pointing out that total financial inclusion could be achieved with an investment of less than 0.1 per cent (USD 1.8 billion) of the GDP which was USD 1.8 trillion in FY13, it said that this investment would deliver a return of up to 0.9 per cent of the GDP per annum.
Source: Business Standard (link opens in a new window)