In India, financial inclusion is primarily driven the central bank, the Reserve Bank of India. All major public sector banks have been allocated time-bound financial inclusion targets defined in terms of number of no frill accounts opened and government to person payments. Therefore, all efforts by the banks have being on customer acquisition that has resulted in high levels of dormancy.
Graham A.N. Wright, Group Managing Director at MicroSave talks about the changing regulatory environment for mobile money in India. He further discusses the approach banks and regulators need to take to achieve financial inclusion in its real sense -- offer a range of financial services through the accounts rather than using them as mere pass through accounts for disbursement for government benefits.