SYLLABUS SECTION: GS III (ECONOMY)

WHY IN THE NEWS?

Recently, the World Bank has released THE GLOBAL FINDEX DATABASE Report 2021.

MAJOR FINDINGS:

• The account ownership worldwide increased by 50 % to reach 76 % of the global adult population.
• Large shares of the global population without formal banking (130 million and 230 million, respectively) lives in India and China because of their size.
• 74 % of men had an account in developing countries whereas women are six points behind, accounts for 68 %.
• 24 % of adults are unbank globally. Lack of money is one of the multiple reasons. Distance is a barrier for 31 % of unbanked adults.

• Globally, 64 % of unbanked adults have primary education or less in the global findex database.
• Worldwide, 36 % of unbanked adults said that financial services are too expensive.

• In developing countries in 2021, 18 % of adults paid utility bills directly from an account. About one third of these paid bills online for the first time.

• Adults in developing countries are more likely to worry about finances than adults in high-income countries.
• Concerns around medical expenses are highest in Sub-Saharan Africa and South Asia, where 64 % of adults are very worried and the lowest in East Asia and the Pacific, where 38 % of adults are very worried.

RECOMMENDATIONS

• The gender gap in mobile access must be addressed to ensure equitable progress on financial inclusion.
• Policies must factor in protections for the most vulnerable, including women, the poor and those with limited educational attainment or financial literacy.

Read more: UPSC CURRENT AFFAIRS

SOURCE: DTE