Crisil’s study was conducted on three parameters that is branch, deposit and credit penetration. The study was conducted in 632 districts in India; the result showed that the bottom 50 districts have just three banks per 100,000 of population and just half of 7.6 percent bank branches are o all-India level.

Through the study it was clear that, there were just 2 percent of total bank branches in these districts, with just 4,068 loan accounts per 100,000 of population when compared to an all-India level of 11,680 accounts.

Largest cities in India have 11 percent of the country’s bank branch while there are four districts in north India which has only one bank per district. This shows that there is inequality in the basic banking services in India.

However, it is quite pleasant to know that south India is much ahead in financial inclusion compared to the rest of the country, where it has scored 62.2 percent of financial penetration where as in all India level it stands at 40.1 percent.

The factors that lead to the lack of financial services are Lack of awareness, low incomes, poverty and illiteracy, the government has taken steps to improve education levels in India.

Also Read:

Spend On Your Children and Get Tax Benefits  

Family budget: Manage your money to lead a blissful life!