Financial Inclusion Index Approach Unifying E-Wallets

In FY 2015 and 2017 India's economy has become the fastest growing major economy in the world. It is the world's sixth-largest economy by nominal GDP and the third-largest by purchasing power parity. However its distribution has largely remained uneven. The lack of access to financial services by a large population of India has been a key impediment in its growth. The importance of financial inclusion to economic growth has been well realised by the policy makers. This paper examines the status of financial inclusion in India in the recent years. The paper focuses on the role of government of India in the development of financial inclusion through regulatory policies and digital means. It highlights the impact of the introduction of Pradhan Mantri Jan Dhan Yojna in 2014 and demonetization in 2016 on financial inclusion of India. It further presents a quantitative approach to calculate financial inclusion index which takes into account mobile money, e-wallets and payment banks. The increased access to mobile phones by the unbanked population is the most effective method of providing financial services and thereby reaching an even and inclusive growth.