“CRISIL Inclusix”- Financial Inclusion Index rises 2.7 % in 2012
The Credit Rating Information Services of India Limited (CRISIL) stated that financial inclusion gained momentum in India with a significant rise in new savings accounts, increase in agriculture credit accounts and expansion of bank branches in deeper geographies.
India’s overall CRISIL Inclusix score has risen by 2.7% in financial year 2012 (the highest annual increase since 2009)
Key points of CRISIL Inclusix, the financial inclusion index:
- Based on data (March 31, 2012) provided by the Reserve Bank of India. The index measures financial inclusion up to the level of each of the 638 districts in India.
- Agricultural credit accounts increased by 11.1%, which is the most since fiscal 2009.
- The number of bank branches in the bottom 100 districts increased by 6%, faster than the all-India growth of 5.6%.
- New deposit accounts in three regions – north, south and east, contributed 42% to the rise in CRISIL Inclusix.
- The overall Inclusix score remained relatively low at 42.8 on a scale of 100, the score reflects under-penetration of formal banking in the country.
- Just one in two Indians has a bank savings account and one in seven approach to bank credit. There are wide disparities in access to financial services, too. While India’s six largest cities have 10% of India’s bank branches, the bottom 50 districts have merely 2% of bank branches.
Note: To speed up inclusion, financial services need to flow beyond the south and the large cities. The policy makers will have to incentivise expansion of banking services in the districts that have low CRISIL Inclusix scores through an increase in branch network and partnerships with other players.