The way to financial inclusion
Technological improvements have enabled local bank agents and lowered the costs of serving the poor
In the mid-2000s, India embarked on an ambitious programme to ensure universal coverage of all households by financial institutions. This objective has been continued under the Prime Minister’s Jan Dhan Yojana (PMJDY) that intends all households to have at least one savings account at a financial institution. One year after the PMJDY’s initiation, more than 21 crore bank accounts have been opened, utilizing a network of more than one lakh business correspondents (BCs).