Challenges to financial inclusion

Abstract

Crores of Jan Dhan accounts have been created. But it is important to curb fraud and keep the accounts operational There have been some recent reports of malpractices with respect to Jan Dhan accounts. In this context, it may be interesting to know the grassroot level challenges that are impacting financial inclusion. In India, where nearly one-fourth of population is illiterate and below the poverty line, ensuring financial inclusion is a challenge. The two indicators, poverty and illiteracy, vary widely between different States in India. Rural poverty is above 30 per cent of population in places such as Assam, Bihar, Madhya Pradesh, Uttar Pradesh, Orissa, Jharkhand, Chhattisgarh, and Manipur. Rural poverty can be attributed to lower farm income, lack of sustainable livelihood, lack of skills, under employment and unemployment. Thus, ensuring deposit operations in these accounts is a challenge. Read more at: https://www.thehindubusinessline.com/opinion/challenges-to-financial-inclusion/article21704769.ece1