“GLOBAL MICROSCOPE 2019: THE ENABLING ENVIRONMENT FOR FINANCIAL INCLUSION REPORT”.
05, Nov 2019
Prelims level : Banking
Mains level : GS-III Inclusive Growth & issues arising from it
Why in News?
- The Economist Intelligence Unit has released the 2019 edition of “Global Microscope: The enabling environment for Financial Inclusion report”.
- The report assessed 55 countries based on enabling environment for financial access.
- The report is a benchmarking index that assesses enabling environment for financial access in 55 countries.
Key Findings of the Report with Respect to India:
- As per the report, India was placed at the 5th spot in the nations having the most conducive environments for inclusive finance.
- The overall environment for financial inclusion has improved globally with India, Colombia, Peru, Uruguay and Mexico having the most favourable conditions for inclusive finance.
- India is among top nations with most conducive environment for financial inclusion in terms of allowing non-banks to issue e-money, proportionate customer due diligence and effective consumer protection.
Government Interventions in this Aspect:
- RBI has released the Enabling Framework for Regulatory Sandbox (RS), which creates the basis for a regulatory sandbox that will allow fintech start-ups to live-test innovative products and services.
- Reserve Bank has prepared a draft National Strategy for Financial Inclusion to deepen financial services coverage in the country.
- The long-awaited strategy is expected to be finalised in 2019 and will cover a five-year period.
- The RBI has set up a high-level committee to review the existing status of digitisation and devise a medium-term strategy for increasing digital payments.
About the Report:
- Produced by Economist Intelligence Unit (EIU), the research and analysis division of The Economist Group.
- It is created in 1946 and is the world leader in global business intelligence.
- The 2019 edition of Global Microscope report features 11 new gender focussed indicators that measure financial inclusion for both women as well as men.
Domains Covered under the Survey:
- Government and Policy Support
- Products and Outlets
- Stability and Integrity
- Consumer Protection
- Infrastructure