India has beaten China, Germany and South Africa in financial inclusion metrics buoyed by the Pradhan Mantri Jan-Dhan Yojana, digital infrastructure and usage of Banking Correspondent or BC model, a State Bank of India (SBI) report has said.

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The report also said the number of bank branches per 100,000 adults in the country rose from 13.6 in 2015 to 14.7 in 2020. This is higher than in countries like China, Germany and South Africa.

“India has stolen a march in financial inclusion with the initiation of PMJDY accounts since 2014, enabled by a robust digital infrastructure and also careful recalibration of bank branches and thereby using the BC model judiciously for furthering financial inclusion,” SBI’s Chief Economic Adviser Soumya Kanti Ghosh said in the report.

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Mobile and internet banking transactions per 1,000 adults also rose from 183 in 2015 to 13,615 in 2019.

The report said there was a significant decline in consumption of alcohol and tobacco in states where more Pradhan Mantri Jan-Dhan Yojana accounts were opened.

The Banking Correspondent (BC) model contributed in promoting financial inclusion with its wide range of low-cost banking services.

The number of ‘banking outlets in villages-BCs’ has gone up from 34,174 in March 2010 to 12.4 lakh in December 2020.

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Public sector bank BCs provide banking services such as opening of accounts from a fixed location under the supervision of a specific bank branch, while BCs of other banks operate through 'micro ATM/kiosk application on mobile.' These provide fee-based financial services such as withdrawals and remittances through hand-held devices.

The SBI report said setting up a kiosk under the bank-led BC model requires a capital expenditure of Rs 1-1.5 lakh. However, capital expenditure of BC model in ‘micro ATM/kiosk application on mobile’ for other banks is around Rs 30,000 or less.

(Edited by : Shoma Bhattacharjee)