Making Digital Financial Inclusion a Reality

Riding on the JAM trinity, Rs 42.5 crore savings bank accounts have been opened with total deposits of Rs 1.44 lakh crore as of 16 June 2021 (GoI 2021). [...]JAM brought a majority of the financially excluded into the mainstream banking domain. Provide an enabling legal environment to protect consum...

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Bibliographic Details
Published in:Economic and political weekly 2021-09
Main Authors: Srikanth, Maram, Ranjani, K S, Kalloor, Veneet J
Format: Article
Language:English
Subjects:
Bank accounts
Banking industry
Coronaviruses
Cost control
COVID-19
Digital literacy
Electronic banking
Financial inclusion
Financial literacy
Financial services
Financial services industry
Internet
Pandemics
Payment systems
Rural areas
Rural development
Small & medium sized enterprises-SME
Technology and civilization
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Summary:Riding on the JAM trinity, Rs 42.5 crore savings bank accounts have been opened with total deposits of Rs 1.44 lakh crore as of 16 June 2021 (GoI 2021). [...]JAM brought a majority of the financially excluded into the mainstream banking domain. Provide an enabling legal environment to protect consumers (HLP 3 and 5): During the financial year (FY) 2016–17, the RBI instructed the banks to limit the liability of the customers in fraudulent electronic banking transactions if the same are reported within the prescribed time; additionally, the RBI also introduced an online dispute resolution mechanism, a complaint management system, and a grievance redressal framework related to failed payment transactions during FY 2020–21. Banking outlets in India received 3.09 lakh complaints during FY 2019–20 with a massive growth rate of 57.5%; the majority of these fall under ATM or debit cards (22%), mobile or electronic banking (13.38%), and credit cards (9.3%) categories. Financial and digital literacy (HLP 6): The RBI developed the National Strategy for (a) financial inclusion (NSFI 2019– 2024) to provide access to formal and affordable financial services, by promoting financial literacy and consumer protection (RBI 2019); and (b) financial education (2020–25) to create awareness and disseminate knowledge on financial inclusion to all the stakeholders and advised the states to incorporate modules on financial or digital literacy in the school curriculum.
ISSN:0012-9976