NATIONAL FINANCIAL INCLUSION STRATEGY (2019-2024): A REVIEW

Abstract

This commentary reviews the National Financial Inclusion Strategy 2020-24 for India prepared by the Reserve Bank of India. More than 60 countries have committed themselves to increase access to various financial services in recent years and many countries have been developing financial inclusion strategies since 2014. Around twenty countries have drafted a Financial Inclusion strategy since 2014. India has recently come up with a strategy for the next 5 years. A strategy is defined as a plan of action to achieve a long-term goal. This commentary reviews both the ‘plan of action’ part and the ‘goal’ part of the financial inclusion strategy. We assess if the plan of action is realistic and assesses if the right ‘goals’ have been set to be achieved. To do so, we use the nationwide financial access data, data on inter-state variations in financial access, data on household-level financial access data collected in the National Family Health Survey (NFHS) and NABARD rural financial inclusion reports, and data from a primary survey in Patna. By using these various data sources, the commentary provides inputs on aspects that need to be considered in a comprehensive financial inclusion strategy.