JAM trinity transformed the concept of financial inclusion: SBI's C S Setty
1 min read 15 Dec 2021, 04:49 PM ISTSpeaking on the financial inclusion in India, Setty said the first-time bank customers will keep adding, but a large coverage of population has happened so far.
PremiumJan Dhan-Aadhaar-Mobile (JAM) trinity has transformed the whole concept of financial inclusion in India and it is a great story, said State Bank of India (SBI) Managing Director C S Setty at 14th mint Annual Banking Conclave.
"As far as the existing adult population is concerned, a large population is covered and India is set for a next phase of financial inclusion," Shetty said.
Speaking on the financial inclusion in India, Setty said the first-time bank customers will keep adding, but a large coverage of population has happened so far.
"Now we are moving towards a new phase of financial inclusion. But, the basic access to the banking is broadly covered (in India)."
“There are three elements in the financial inclusion.. i.e, access, usage and quality of usage. In terms of access, banks have created a large scale infrastructure even in rural areas and hence the access part is more or less addressed," Setty said
“When it comes to usage, a large number of rupee cards that customers get are not utilised, but in terms of the transactional accounts there is a great amount of adoption."
“Of the near 13.18 crore PMJDY accounts in SBI, today a miniscule percentage of them are zero balance accounts and many of those accounts have over ₹10,000 which means a number of transactions are happening. However, in terms of digital adoption there are still a few gaps left," the SBI MD further added.
Meanwhile, Bhargavi Zaveri of National University of Singapore said digital inclusion is not an end but a means to an end that hopefully, financial inclusion will give people a better life.
"The next big challenge is how do you get the consumer to use the bank account more efficiently. Around 53% of people were aware of credit and 12% were using it. Around 30% knew what a PPF account is and 9 per cent of them had a PPF account. So the first hurdle of opening more banking accounts is crossed, now the question is how do make people use these products more efficiently."
