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The Status of Financial Inclusion, Regulation, and Education in India

Author

Listed:
  • Abheek Barua

    (Asian Development Bank Institute)

  • Rajat Kathuria

    (Asian Development Bank Institute)

  • Neha Malik

    (Asian Development Bank Institute)

Abstract

India’s financial inclusion agenda has witnessed a paradigm shift over the last decade, away from an emphasis on credit to a more comprehensive approach toward financial services (e.g., opening bank accounts and offering basic financial products, such as insurance). This paper describes the structure of banking and microfinance institutions in India relevant to the developing model of financial inclusion, as well as relevant regulatory structure and modes of delivery. It explains the current state of financial inclusion, as well as regulatory changes necessary to make the new architecture for inclusion viable, including a critique of some of the recommendations of the Mor Committee on Comprehensive Financial Services for Small Businesses and Low-Income Households. The paper then reviews modes of delivery and the regulatory structure being contemplated or recently introduced. It assesses the suitability objective envisaged as critical for inclusion, associated challenge of revamping consumer protection laws, and imperative of improving financial literacy. The paper also discusses the case of micro, small, and medium-sized enterprises in the given context.

Suggested Citation

  • Abheek Barua & Rajat Kathuria & Neha Malik, 2016. "The Status of Financial Inclusion, Regulation, and Education in India," ADBI Working Papers 568, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0568
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    References listed on IDEAS

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    1. Kate Lauer & Michael Tarazi, 2012. "Supervising Nonbank E-Money Issuers," World Bank Publications - Reports 17100, The World Bank Group.
    2. Rajan, Raghuram G. & Zingales, Luigi, 2003. "The great reversals: the politics of financial development in the twentieth century," Journal of Financial Economics, Elsevier, vol. 69(1), pages 5-50, July.
    3. Bhagwati, Jagdish N., 1988. "Poverty and public policy," World Development, Elsevier, vol. 16(5), pages 539-555, May.
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    Cited by:

    1. Aruna Sharma & James Copestake & Michelle James, 2021. "The Samagra anti‐poverty programme in Madhya Pradesh: Integrating household data, overcoming silo‐problems and leaving nobody behind," Development Policy Review, Overseas Development Institute, vol. 39(3), pages 435-449, May.
    2. Larios-Hernández, Guillermo Jesús, 2017. "Blockchain entrepreneurship opportunity in the practices of the unbanked," Business Horizons, Elsevier, vol. 60(6), pages 865-874.
    3. Syella Nurhaliza & Ariodillah Hidayat & Siti Rohima & Rasyida Pertiwi & Liliana & Sri Andaiyani & Xenaneira Shodrokova & Ichsan Hamidi, 2024. "The Relationship between Financial Inclusion and Financial Stability Banking Industry in G20 Emerging Market Countries: A Panel Data Evidence," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 113-132.
    4. Naoyuki Yoshino & Peter J. Morgan, 2016. "Overview of Financial Inclusion, Regulation, and Education," ADBI Working Papers 591, Asian Development Bank Institute.
    5. Faizan Khan Sherwani, 2021. "Interest-Free Microfinance Arrangements and Its Impact on the Livelihood of Women in India," GATR Journals jfbr188, Global Academy of Training and Research (GATR) Enterprise.
    6. Armen Nurbekyan & Naneh Hovanessian, 2018. "Financial Inclusion, Regulation, Financial Literacy and Financial Education in Armenia," Working Papers id:12815, eSocialSciences.
    7. Ojah, Kalu & Kodongo, Odongo, 2024. "Effective financial inclusion and the need to put the horse before the cart: Saving!," International Review of Financial Analysis, Elsevier, vol. 96(PB).

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    More about this item

    Keywords

    India’s financial inclusion; microfinance institutions; financial literacy; consumer protection laws;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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