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Business News/ Industry / Banking/  19% of India’s population still unbanked: Assocham-EY report
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19% of India’s population still unbanked: Assocham-EY report

Govt and RBI have made several efforts to promote financial inclusion, but a significant percentage of the population remains unbanked due to lack of last-mile connectivity

The govt and RBI have launched cooperative banks and regional rural banks, and introduced mandated priority sector lending targets to further financial inclusion in rural India. Photo: MintPremium
The govt and RBI have launched cooperative banks and regional rural banks, and introduced mandated priority sector lending targets to further financial inclusion in rural India. Photo: Mint

New Delhi: India’s financial services ecosystem lags in terms of physical infrastructure and has failed to reach the poor people, with more than 19% of the population unbanked or financially excluded, says a report.

The Assocham-EY joint study said, however, the government and the Reserve Bank of India (RBI) have made several concentrated efforts to promote financial inclusion.

These efforts include launch of cooperative banks and regional rural banks (RRBs), introduction of mandated priority sector lending (PSL) targets, formation of self-help groups, appointment of business correspondents by banks to provide door-step delivery of banking services, Assocham said.

“These initiatives helped to bring in a large section of the unbanked population under the formal financial credit system. However, a significant portion of India’s population still remains devoid of access to basic formal credit facilities mainly due to lack of last mile connectivity," the chamber said.

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Published: 24 Jul 2017, 08:59 PM IST
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