Tuesday, Jun 02, 2020 | Last Update : 08:57 PM IST

70th Day Of Lockdown

Maharashtra70013301082362 Tamil Nadu2349513170187 Delhi208348746523 Gujarat17217107801063 Rajasthan91006213199 Uttar Pradesh83615030222 Madhya Pradesh82835003358 West Bengal57722306325 Bihar3945174123 Andhra Pradesh3676237464 Karnataka3408132852 Telangana2792149188 Jammu and Kashmir260194631 Haryana2356105521 Punjab2301200044 Odisha210412459 Assam14862854 Kerala132760811 Uttarakhand9592225 Jharkhand6612965 Chhatisgarh5481211 Tripura4231730 Himachal Pradesh3401186 Chandigarh2972144 Manipur83110 Puducherry79250 Goa73500 Nagaland4300 Meghalaya28121 Arunachal Pradesh2010 Mizoram110 Sikkim100

India among nations with most conducive environment for financial inclusion: Report

PTI
Published : Oct 31, 2019, 3:06 pm IST
Updated : Oct 31, 2019, 3:06 pm IST

As per the report India, Colombia, Peru, Uruguay and Mexico have the most favourable conditions for inclusive finance.

South Africa, India, Mexico, Tanzania and Uruguay were among the top countries that safeguard e-money via some sort of deposit insurance or protection. (Photo: File)
 South Africa, India, Mexico, Tanzania and Uruguay were among the top countries that safeguard e-money via some sort of deposit insurance or protection. (Photo: File)

New Delhi: India is placed among the top nations with the most conducive environment for financial inclusion in terms of allowing non-banks to issue e-money, proportionate customer due diligence and effective consumer protection, a report said on Thursday.

According to The Economist Intelligence Unit's 2019 Global Microscope on Financial Inclusion report, the overall environment for financial inclusion has improved globally with India, Colombia, Peru, Uruguay and Mexico having the most favourable conditions for inclusive finance.

Within the overall framework for promoting digital financial inclusion, the report identified four basic enablers - allowing non-banks to issue e-money, presence of financial service agents, proportionate customer due diligence and effective financial consumer protection.

Only four countries - Colombia, India, Jamaica and Uruguay - scored perfectly across all four parameters.

In these countries, a range of providers are capable of providing digital financial services to people on the margins of the formal financial system, regulations control for some of the risks inherent in these services, and clear rules mark out spaces appropriate for innovation to achieve greater financial inclusion, the report said.

South Africa, India, Mexico, Tanzania and Uruguay were among the top countries that safeguard e-money via some sort of deposit insurance or protection.

This type of protection provides security to users of these new technologies, avoids creating regulatory imbalances between different types of institution, and ensures that digital financial inclusion does not place new consumers in the financial system at a disadvantage compared to those transacting with more traditional institutions, the report noted.

Additionally, these countries require financial institutions to maintain liability for the actions of their agents, ensuring that customers whose nearest access point is an agent do not receive less protection than customers who can visit a bank branch, it added.

In India, the Reserve Bank of India has prepared a draft National Strategy for Financial Inclusion to deepen financial services' coverage in the country.

The long-awaited strategy is expected to be finalised in 2019 and will cover a five-year period.

The RBI has set up a high-level committee to review the existing status of digitisation and devise a medium-term strategy for increasing digital payments, the report said.

In August 2019, the RBI released the Enabling Framework for Regulatory Sandbox (RS), which creates the basis for a regulatory sandbox that will allow fintech start-ups to live-test innovative products and services.

Tags: financial inclusion, e-money, digital payments, finance, financial services
Location: India, Delhi, New Delhi
ADVERTISEMENT
ADVERTISEMENT