BLOG SURF: Financial system
History is replete with evidence of the role played by monetary and financial systems in people’s lives.
Observers describe “golden age” periods in which quality of life was better, spirit of innovation encouraged, and prosperity widespread.
To the extent that this was indeed the case, it was so because of wider participation in formal financial systems. Today, the extent of such participation is an indicator of economic wellbeing made possible through opportunities in savings, payments, investments, and insurance.
Financial services also help small businesses grow, create employment, and contribute to economies. Yet a reported 2.5 billion adults worldwide are excluded from formal financial systems.
In India, nearly half of the country’s 1.25 billion people have no access to banking services, and close to 300 million people live below the official poverty line.
To realize India’s potential, its leaders need to ensure this excluded segment can take part in formal banking .