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Despite heightened focus on financial inclusion, Indian banks still somewhat failed to bring the under- and un-banked into the mainstream banking fold. India has currently the second-highest number of financially excluded households in the world.According to a report on Financial Inclusion for equitable growth by Ernst & Young, in association with Assocham, only about 30,000 out of 60,00,000 habitations in the country have at least one commercial bank branch. Approximately, 40% of India's population have bank accounts, and only about 10% have any kind of life insurance cover, while a meagre 0.6% have non-life insurance cover. People with debit cards comprise only 13% of population and those with credit cards only a marginal 2%.The situation is worse in the case of people in the low-income group. Only 23.3% earning people with an annual income of less than Rs 50,000 have bank accounts. Overall, 44.9% people across the different income groups have bank accounts, according an estimate in 2007.Some parameters which characterise financially excluded people include factors like lack of bank account and financial services, reliance on alternative forms of credit, lack of other financial products such as insurance, savings products and pension, lack of capacity and livelihood alternatives."Millions of people across the country are thereby denied the opportunity to harness their earning capacity and entrepreneurial talent, and are condemned to marginalisation and poverty," said the report.
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