India is now ahead of China in financial inclusion metrics, with mobile and internet banking transactions rising to 13,615 per 1,000 adults in 2020 from 183 in 2015 and the number of bank branches going up to 14.7 per 1 lakh adults in 2020 from 13.6 in 2015, according to an SBI report.
Countries with higher financial inclusion and more bank accounts have also seen a perceptible decline in crime along with a meaningful drop in consumption of alcohol and tobacco due to the higher level prosperity and savings.
The report compiled by Soumya Kanti Ghosh, group chief economic adviser at State Bank of India (SBI), on the fifth anniversary of the demonetisation of the old Rs 500 currency note in the country.
Under the non-frills accounts scheme, the number of persons with deposit accounts at banks has significantly increased, becoming comparable with emerging economy peers and even some of the advanced economies. In terms of the use of digital payments also, there is noteworthy progress, the report adds.