Economy News

GLOBAL MICROSCOPE FOR FINANCIAL INCLUSION REPORT 2019

Written by Talent KAS

Related Topic in KAS Prelims Syllabus:

Economy [Paper-II]: Recent fiscal and monetary policy issues and their impact, structure of Indian Banking and Non Banking Financial Institutions and reforms

News

Economist Intelligence Unit has released Global Microscope on Financial Inclusion Report 2019.

About the Report

  • The Global Microscope for Financial Inclusion is a benchmarking index that assesses the enabling environment for financial access in 55 countries
  • The 2019 edition features 11 new gender-focused indicators that measure financial inclusion for both women and men.

Key Highlights of the Report

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

National Strategy for Financial Inclusion

  • Reserve Bank of India (RBI) has prepared a draft National Strategy for Financial Inclusion to deepen financial services’ coverage in the country.
  • The strategy is expected to be finalised in 2019 and will cover a five-year period.

[Source: The Hindu]

 

About the author

Talent KAS