Changing Lives
Internet banking made its foray in the country
in the second half of the nineties, while mobile
banking made its debut a decade later. Let's not
forget, however, India offers an interesting study
in contrasts. While a small part of the country
was digitally evolving, a significant portion
remained untouched by the digital revolution.
This stark reality compelled government,
banks and financial institutions to take drastic
measures. These entities therefore collaborated
and, subsequently, created disruptions to
accelerate financial inclusion in the country.
It is imperative to state, however, that micro
finance was the first major disruption in this
space. The numbers tell all-as of March
2019, there are over 93 million microfinance
accounts in India. The industry boasts a
gross loan portfolio (GLP) of $26.38 billion.
Another aspect of microfinance in India is the
Self-Help Group (SHG) movement. This
has, without a doubt, emerged as the world's
largest and most successful network of
women-owned community-based micro
finance institution. The Self Help Group Bank
Linkage Programme (SHG-BLP) is a landmark
model initiated by the National Bank for
Agriculture and Rural Development (NABARD)
in 1992. It is aimed at delivering affordable
banking services and facilitating financial
inclusion. Today, SHG-BLP caters to 120 million
households through more than 10 million
SHGs. Deposits span over $3.24 billion and
annual loan off-take value is $8.16 billion.
The JAM trinity (Jan Dhan, Aadhar and
mobile phones) is another major initiative.
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Launched in 2014, Jan Dhan has certainly
proved its mettle, providing over 370 million
bank accounts. Consequently, over 80 per
cent of India's adults are now financially
included, compared to a mere 35 per cent in
2011. Notably, 53 per cent of Jan Dhan
account holders are women and 58 per cent
reside in rural and semi-urban areas. To
provide a global perspective, Jan Dhan
upholds several of the United Nations'
Sustainable Development Goals (SDGs).
These include the SDG 8, expanding financial
inclusion, SDG 5 – giving women equal access
to financial services and SDG 10 – promoting
economic inclusion for all.
Universal financial access attained through
Jan Dhan certainly changed the game. For
one, the government obtained the opportunity
to reduce corruption and losses incurred
whilst transferring subsidies and benefits to
citizens. The Direct Benefit Transfer (DBT)