Page 8 - CII Artha Magazine

The relentless push given to services such as pensions, service which is operated Suraksha Bima Yojana, and Atal launched pilots in the
equitable growth by countries savings, insurance. To remedy through a private Pension Yojana, India has made wholesale and retail segments
and institutions has resulted the situation, a dedicated telecommunications provider tremendous progress towards within a closed user group.
in significant progress being approach and effective and has nationwide coverage financial inclusion. Such an initiative, if pursued
made in achieving financial cooperation among multiple independent of traditional further, would not only lead to
inclusion. For instance, studies stakeholders, including the banks. Today, more than 75 financial inclusion by creating
suggest that the proportion G-20, is required for banking percent of Kenya’s population G-20 FORUM HAS bank deposits for the
of adults (15 and older) the unbanked in the society. has access to financial HELD ADVANCE unbanked but would also help
having an account with a services which has grown DISCUSSION ON THE in achieving sustainable
financial institution has gone One of the most promising significantly from 26.7 per CREATION OF development goals (SDG).
up from 51 per cent in 2011 ways to financially empower cent in 2006 to 83.7 per cent CENTRAL BANK
to 74 per cent in 2021. the poor would be by in 2021—the highest in DIGITAL CURRENCY On assuming the presidency
Similarly, the latest Global encouraging the use of Sub-Saharan Africa. Such WITH 18 COUNTRIES of G-20, India has continued
Findex database 2021 shows technology and digitization. success stories could be to accord financial inclusion a
76 per cent of the global Multi-stakeholder deliberated and replicated by primacy of place in its agenda
population having a bank cooperation could be sought other countries as well. In of priorities to facilitate
account in 2021 as against to deepen financial inclusion fact, technology has created The G-20 forum could also equitable growth among
51 per cent in 2011. The and improve service delivery. new opportunities, post discuss expanding the countries. Accordingly, the
digitization drive, which was For instance, India could share Covid-19, for digital financial coverage of Fintech, which in Business20 (B20) India, an
accelerated in the aftermath its experience with its G20 services to accelerate and recent times has engagement group under G20,
of Covid-19, has further counterparts of how to use enhance financial inclusion demonstrated a huge potential has established a Task Force
hastened financial inclusion public private partnerships to and the G-20 forum should for driving financial inclusion on ‘Fostering Financial
efforts. create digital solutions like be used for further among the underserved Inclusion and Empowering
UPI to promote financial strengthening the digital population in remote areas. By Societies’. The Task Force
inclusion. In fact, the United ecosystem and addressing the using technologies such as would draft a policy paper
USE OF TECHNOLOGY Payments Interface (UPI), by risks associated with it. artificial intelligence for risk outlining a framework for
AND DIGITIZATION IS creating a digital platform for assessment, and being agile linking financial inclusion with
IMPORTANT FOR promoting cashless At the same time, the policies and consumer-centric, fintech economic empowerment, for
FINANCIALLY transactions, has emerged as and schemes launched by the companies can provide credit both users and businesses
EMPOWERING THE an excellent example of Indian Government such as to people in the ‘high- risk’ keeping ‘strengthening of
POOR technology boosting financial Pradhan Mantri Jan Dhan category in remote areas or livelihoods’ at the center.
inclusion and for accelerating Yojana, which has facilitated low-income, unbanked
financial literacy among the universal access to banking individuals and encourage To conclude, financial inclusion
Despite this, more than a masses. facilities, promoted financial them to save, grow their has emerged as an important
third of the global population literacy, facilitated access to money, and take advantage of tool to strengthen the
continue to be financially KENYA’S MOBILE credit, insurance, and pension government programmes and livelihoods of underprivileged
excluded due to challenges PAYMENT SERVICES, services along with channeling assistance. This gives consumers and, in turn, drive
arising from inadequate M-PESA HAS SEEN all benefits through direct small-ticket borrowers and their economic
access to finance, high capital HUGE SUCCESS IN benefit transfer, can be shared local businesses access to empowerment. Hence, the
costs, lack of consumer ACHIEVING FINANCIAL with G-20 nations. As a result microfinancing services for B-20 forum, created during
awareness, trust deficit, INCLUSION of the scheme, the share of important purchases and India’s Presidency of G-20,
limited digital and physical unbanked adults has dropped capital investment, which is which would deliberate and
infrastructure, among others. from 47 per cent in 2014 to unlike the case with traditional suggest a toolkit of measures
As a result, some of the most Similarly, the success of Kenya 22 per cent in 2021. Besides, banking systems. to bridge the rich-poor divide,
vulnerable segments of the in achieving financial inclusion the Pradhan Mantri Mudra especially in developing
economy, such as women, through use of new financial Yojana has benefitted more The G-20 forum has also held countries, is a salutary step
farmers, rural poor, and small technology and innovations, than 400 small and micro advance discussion on the forward.
businesses, continue to be especially in mobile money enterprises since its launch in creation of Central Bank
unserved and and mobile banking, is also 2015. Similarly, with social digital currency with 18 [Note: Mr Bajaj is the Co-Chair of the
underpenetrated, resulting in worth emulating. Kenya’s security schemes such as countries having agreed to the B20 Taskforce on ‘Financial Inclusion
increasing credit gaps and mobile payment services, Pradhan Mantri Jeevan Jyoti proposal. Of these seven for Economic Empowerment’]
limited use of financial M-PESA, is a well-known Bima Yojana, Pradhan Mantri countries, including India have

08 ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY 09
QUARTERLY JOURNAL OF ECONOMICS
QUARTERLY JOURNAL OF ECONOMICS
MAY 2023 MAY 2023