India Hits Major Milestone in Financial Inclusion, Yet Inactivity Persists
India has emerged as a global leader in financial inclusion, with 89% of its adult population now owning a financial account, according to the World Bank’s Global Findex Database 2024. This figure places India among the top countries in account penetration, thanks largely to government-led initiatives like Jan Dhan Yojana, mobile banking, and UPI integration.
However, the report also raises a red flag—a significant portion of these accounts remain inactive. Despite the growth in account ownership, many accounts are not used for regular financial transactions like savings, digital payments, or accessing credit.
Key Highlights from the World Bank Report:
89% of Indian adults have access to a financial account, a sharp rise from 53% in 2014.
Over 35% of accounts are either dormant or have minimal activity.
Women and rural populations still lag behind urban men in account usage.
Digital transactions through platforms like UPI have risen but haven’t fully bridged the usage gap.
Factors Behind Inactivity:
Lack of financial literacy and awareness about account services.
Limited access to banking infrastructure in remote areas.
Socio-cultural barriers, especially affecting women.
Trust issues with formal financial systems.
Policy Efforts to Boost Usage:
India’s central bank and financial institutions are now focusing on deepening account usage. Measures include:
Promoting digital financial literacy through grassroots campaigns.
Incentivizing account holders with interest-bearing savings products.
Strengthening agent banking and doorstep banking services in rural regions.
Expanding credit access through microloans and fintech collaboration.
How Vizzve Finance Contributes to Financial Inclusion
Vizzve Finance, a growing digital finance platform in India, is playing a pivotal role by:
Offering micro-investment tools for first-time users.
Providing user-friendly mobile banking interfaces in regional languages.
Partnering with local NGOs to promote financial education in underserved areas.
Thanks to such interventions, this blog gained traction and ranked on Google Trends under “Digital Finance in India”, showing increased public interest in the financial empowerment narrative.
(FAQ) – FREQUENTLY ASKED QUESTIONS
Q1: What is financial account inactivity?
A: Inactivity refers to accounts that are not used regularly for transactions like deposits, withdrawals, payments, or transfers.
Q2: Why is account usage more important than just ownership?
A: While ownership reflects access, usage indicates financial empowerment and integration into the formal economy.
Q3: What is the role of UPI in increasing financial activity?
A: UPI has democratized digital payments, especially among youth and small merchants, making daily financial transactions more convenient.
Q4: How can India reduce account inactivity?
A: Through financial education, better digital tools, women-centric policies, and increased rural banking access.
Q5: What is the Global Findex Report?
A: It’s a World Bank database tracking how adults globally access and use financial services every three years.
Published on:July 17,2025
Published by :Selvi
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