Research for Global Development

Effects of Demonetization on Financial Inclusion in India


decentralization-cover-11917

Today marks the one year anniversary of demonetization in India. As we look back and look ahead, what does the data say about its impact on financial inclusion in in India?

InterMedia recently concluded a study measuring financial inclusion in India before and after demonetization among the same group of 1,600 randomly selected individuals in the states of Gujarat, Madhya Pradesh, and Rajasthan. Today we are pleased to announce and share with you the publication of our findings:  The Effects of Demonetization on Financial Inclusion in India. This research provides stakeholders with one of the first  large scale demand side studies on the topic to date and we look forward to discussing our analysis and hearing your thoughts.

Over all, our research found that demonetization led to increases in the percentage of registered financial account holders and active and advanced users of registered accounts, particularly bank and post office accounts. Effects were seen across demographic groups: Nearly all groups showed gains in financial inclusion and the greatest increases occurred among women and rural residents. The prevalence of cashless payments, however, showed little growth. Mobile money only showed only a small increase in users and most merchants remained cash-dependent. Interestingly, most respondents saw the demonetization policy as necessary and beneficial. A short blog summarizing findings can also be found on our Financial inclusion Insights website.

Feel free to share your reactions to these findings and your thoughts regarding the way forward for financial inclusion in India.

InterMedia

Effects of Demonetization on Financial Inclusion in India


decentralization-cover-11917

Today marks the one year anniversary of demonetization in India. As we look back and look ahead, what does the data say about its impact on financial inclusion in in India?

InterMedia recently concluded a study measuring financial inclusion in India before and after demonetization among the same group of 1,600 randomly selected individuals in the states of Gujarat, Madhya Pradesh, and Rajasthan. Today we are pleased to announce and share with you the publication of our findings:  The Effects of Demonetization on Financial Inclusion in India. This research provides stakeholders with one of the first  large scale demand side studies on the topic to date and we look forward to discussing our analysis and hearing your thoughts.

Over all, our research found that demonetization led to increases in the percentage of registered financial account holders and active and advanced users of registered accounts, particularly bank and post office accounts. Effects were seen across demographic groups: Nearly all groups showed gains in financial inclusion and the greatest increases occurred among women and rural residents. The prevalence of cashless payments, however, showed little growth. Mobile money only showed only a small increase in users and most merchants remained cash-dependent. Interestingly, most respondents saw the demonetization policy as necessary and beneficial. A short blog summarizing findings can also be found on our Financial inclusion Insights website.

Feel free to share your reactions to these findings and your thoughts regarding the way forward for financial inclusion in India.

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