Only 48% of Indian Adults Have Access to Bank Accounts

Wednesday, December 3, 2014

Only 48 per cent of Indian adults have bank accounts and nearly half of them lie dormant, says a report.

According to a nation-wide survey on financial behaviour, India has the highest account dormancy rate even more than countries like Kenya, Tanzania, Uganda, Nigeria, Pakistan and Bangladesh.

The survey compiled by the Financial Inclusion Insights programme, operated by global strategic research consultancy InterMedia and supported by the Bill & Melinda Gates Foundation, noted the majority of Indians borrow money from family and friends and not from financial institutions.

“While 48 per cent of Indian adults have access to a bank account, the highest rate of the seven countries, 47 per cent of Indian accounts lie dormant,” the survey said, adding that fewer than a quarter of account users use advance banking services, while only 0.3 per cent use mobile money services.

India has the lowest proportion of adults who are aware of or have ever used mobile money, it said.

Source: The Economic Times (link opens in a new window)

financial inclusion