India specific data has been extracted and analyzed from The Global Findex Database 2017 (https://globalfindex.worldbank.org/), which is the world’s most comprehensive data set on how adults save, borrow, make payments, and manage risk.

1. The Global Findex Database 2017
An Analysis of India

2. Global Findex Survey
• Countries Covered : 140
• Sample Size : 150,000 individual respondents
• Age group : + 15 Years
India Survey
• Data Collection Period : April 21 – Jun 2 , 2017
• Sample Size : 3,000 individual respondents
• Methodology : Face to Face Interviews
Key Definition
• Financial Institution (FI) : All types of financial institutions that offer deposit, checking,
and savings accounts—including banks, credit unions, microfinance institutions, and
post offices—and that fall under prudential regulation by a government body. In the
case of India, FI would be a Bank
• Mobile Money Account : Mobile phone based services , not linked to a Financial
Institution (a Bank in case of India). People using a mobile money account linked to a FI
are considered to have an account with the FI
Maharnav Patir - Independent Consultant(maharnavp@gmail.com) 2
Survey Methodology for The Global Findex Database 2017
Source of Data for this Presentation
1. The Global Findex Database 2017
2. Reserve Bank of India
3. www.dbtbharat.gov.in

3. Maharnav Patir - Independent Consultant(maharnavp@gmail.com) 3
• The World Bank Findex Survey shows the % of respondents who report having an account with a Bank or another type of Financial Institution (single or joint) and/or a
having used the services of a Mobile Money Account (Mobile Wallet) in past 12 months
• The above chart reflects the growth of Bank Accounts in India as people using Mobile Wallets linked to a Bank Account are considered to have an account with the
Bank (% of Mobile Wallets in India not linked to a Bank Account is minimal)
• High growth between 2014 & 2017 was primarily due to the effect of PM Jan Dan Yojana (PMJDY) launched in August 2014. Nearly 280 million Bank Accounts were
opened till June 2017 under the PMJDY scheme
• The global average of % of respondents who report having an account increased from 51% in 2011 to 69% in 2017
35%
44% 44%
26% 26% 27%
38%
31%
59%
27%
41%
33%
53%
63% 64%
41%
43% 43%
57%
43%
64%
44%
59%
52%
80%
83% 84%
75% 77%
71%
83%
75%
85%
77%
82%
79%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Overall Male In Labor Force Out of Labor
Force
Female Young Adults (15-
24)
Older Adults (+25) Primary Edu or
Less
Secondary Edu or
More
Poorest 40% Richest 60% Rural
Account
2011 2014 2017
Bank Account and Mobile Money Growth

4. Maharnav Patir - Independent Consultant(maharnavp@gmail.com) 4
108
255
604
1,630
3,026
829 871 928 986 1,087
-
500
1,000
1,500
2,000
2,500
3,000
3,500
2014 2015 2016 2017 2018
Mobile Wallet Transactions
Volume (Million) Value (Rs Billion)
This chart shows the % of
respondents who report personally
using a mobile money service (not
linked to a Bank) in the past 12
months. It shows decrease in % of
respondents using mobile money
services during the period
RBI Data shows that volume of
transactions have grown at a CAGR
of 147 % over the same period
Is the degrowth shown by the Findex survey
due to more people linking their m - wallet to a
Bank for ease of loading/reloading or is it an
error in the survey methodology ?
2%
3%
1%
1%
3%
2%
2%
3%
1% 1%
3%
1%
0%
1%
1%
2%
2%
3%
3%
4%
4%
Overall Male Female Poorest 40% Richest 60% Rural
Mobile Money Accounts
2014 2017
Mobile Money Usage

5. Maharnav Patir - Independent Consultant(maharnavp@gmail.com) 5
This chart shows the reasons cited
by respondents for not having a
Bank Account or not having used
any Mobile Money services in the
past 12 months . No comparable
data for 2011 & 14 are available
This chart shows the % of
respondents with dormant/inactive
accounts which is the highest in the
world as per the Findex survey and
poses a key challenge to Financial
Inclusion and profitability of service
providers
42%
44%
48% 48%
38%
40%
42%
44%
46%
48%
50%
No deposit and no withdrawal in the past year (% with a FI account) No deposit and no withdrawal in the past year (% with an account)
Dormant/Inactive Accounts
2014 2017
23%
27%
22% 20%
6%
54%
52%
1%
0%
10%
20%
30%
40%
50%
60%
Financial
institutions are
too far away
Financial services
are too expensive
Lack of necessary
documentation
Lack of trust in
financial
institutions
Religious reasons Insufficient funds Someone in the
family already has
an account
No need for
financial services
Reasons for not having an Account
Key Challenges towards 100% Financial Inclusion

6. Maharnav Patir - Independent Consultant(maharnavp@gmail.com) 6
18 19 30
230
400
781
-
100
200
300
400
500
600
700
800
900
Apr-11 Apr-14 Apr-17
RBI Data on Credit Card and Debit Card Outstanding
(Millions)
Credit Cards Outstanding Debit Card Outstanding
8%
12% 12%
5% 5% 3%
12%
5%
22%
32%
29%
14%
11% 11%
30%
20%
33%
43%
40%
24%
22%
17%
43%
26%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Overall Male In Labor Force Out of Labor
Force
Female Poorest 40% Richest 60% Rural
Findex Survey on Debit Card Ownership
2011 2014 2017
2%
2% 2%
1% 1% 1%
2%
1%
4%
7%
5%
3%
2%
3%
5%
3%
3%
4% 3%
3% 2%
2%
4%
2%
0%
1%
2%
3%
4%
5%
6%
7%
8%
Overall Male In Labor Force Out of Labor
Force
Female Poorest 40% Richest 60% Rural
Findex Survey on Credit Card Ownership
2011 2014 2017
• Findex survey shows the % of respondents who report
having a Debit and Credit card
• The survey output from the Findex survey seems to be in
tandem with the RBI Data on Debit Card ownership
• While the Findex survey shows a degrowth in the % of
respondents having credit card from 2014 to 2017, RBI data
shows Credit Card ownership has grown by a CAGR of about
16.5% during the same period
Debit and Credit Card Ownership

7. Maharnav Patir - Independent Consultant(maharnavp@gmail.com) 7
• The above chart shows the % of respondents who report personally saving or setting aside any money for any reason and using any mode of saving in the past 12
months
• The Findex Survey shows that the % of respondents who saved in the past 12 months have decreased on all counters which might be due to
a) income growth is lower than inflation b) higher propensity to spend on housing, consumer goods, health , education etc c) lower interest rates thus
resulting in higher propensity to spend and d) a combination of factors
• Farm or business expansion, old age and medical expenses were some of the reasons cited by respondents as reasons for saving
38%
42%
45%
30%
34%
30%
42%
32%
45%
24%
47%
37%
34%
37%
40%
26%
30%
25%
37%
28%
40%
23%
41%
32%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Overall Male In Labor Force Out of Labor
Force
Female Young Adults (15-
24)
Older Adults (+25) Primary Edu or
Less
Secondary Edu or
More
Poorest 40% Richest 60% Rural
Trends in Savings
2014 2017
Trends in Savings

8. Maharnav Patir - Independent Consultant(maharnavp@gmail.com) 8
This chart shows the % of
respondents who report saving at a
Bank or an FI in the past 12 months.
It is interesting to note that this
chart is not in consonance with the
previous chart (savings trend)
This chart shows the % of
respondents who report savings
informally in the past 12 months.
The reasons for such a high informal
saving rate in India needs to be
explored
12%
16%
7%
10%
12%
11%
14%
18%
10%
7%
19%
13%
20%
22%
17%
12%
25%
18%
0%
5%
10%
15%
20%
25%
30%
Overall Male Female Poorest 40% Richest 60% Rural
Formal Savings
2011 2014 2015
3%
4%
2% 2%
4%
3%
9% 9% 9%
3%
13%
9%
8% 8%
9%
5%
11%
9%
0%
2%
4%
6%
8%
10%
12%
14%
Overall Male Female Poorest 40% Richest 60% Rural
Informal Savings
2011 2014 2015
Formal and Informal Savings

9. Maharnav Patir - Independent Consultant(maharnavp@gmail.com) 9
48%
52%
56%
38%
44%
46%
49% 49%
42%
46%
51%
33%
39%
42% 43% 42%
0%
10%
20%
30%
40%
50%
60%
Overall Male In Labor Force Out of Labor
Force
Female Poorest 40% Richest 60% Rural
Borrowing Trend
2014 2017
48%
4%
6%
9%
32%
0%
42%
0%
7% 8%
33%
4%
0%
10%
20%
30%
40%
50%
60%
Borrowed any money
in the past year
Borrowed from a store
by buying on credit
Borrowed from a
financial institution
Borrowed from a
financial institution or
used a credit card
Borrowed from family
or friends
Borrowed from a
savings club
Sources of Credit
2014 2017
This chart shows the % of
respondents who report borrowing
any money (by themselves or
together with someone else) for any
reason and from any source in the
past 12 months
This chart shows the Family &
Friends (F&F) are still the first
Lender of Choice in India . Ae per
the Survey people who borrowed
from F&F did not borrow from other
lenders. Probable reasons are ease
of access, repayment flexibility and
lower cost of funds
Credit

10. Maharnav Patir - Independent Consultant(maharnavp@gmail.com) 10
12%
15% 15%
8% 8%
7%
15%
11%
16%
19%
21%
11%
13%
12%
19%
16%
0%
5%
10%
15%
20%
25%
Overall Male In Labor Force Out of Labor
Force
Female Poorest 40% Richest 60% Rural
Received Digital Payments
2014 2017
16%
23%
22%
9% 8%
7%
22%
14%
20%
26%
24%
15%
14%
11%
26%
17%
0%
5%
10%
15%
20%
25%
30%
Overall Male In Labor Force Out of Labor
Force
Female Poorest 40% Richest 60% Rural
Made Digital Payments
2014 2017
This chart shows the % of
respondents who report using
mobile money, a debit or credit
card, or a mobile phone to make a
payment through an account in the
past 12 months
This chart shows the % of
respondents who report using
mobile money, a debit or credit
card, or a mobile phone to receive
a payment through an account in
the past 12 months
Transactions also include remittances,
government transfers, wages, pension and
payments for agri products directly from/into an
account
Digital Adoption in India – Key Indicators

11. Maharnav Patir - Independent
Consultant(maharnavp@gmail.com)
11
39%
9% 9%
0%
91%
42%
15% 17%
3%
67%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Paid Utility Bills Using a FI Account Using an Account Using a Mobile Phone Using Cash Only
Utility Bill Payments
2014 2017
21%
12% 12%
2%
75%
14%
19% 22%
2%
60%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Received Payments for Agri
Products
Into a FI Account Into an Account Through a Mobile Phone In Cash
Agricultural Products
2014 2017
This chart shows that Cash is still
the predominant mode of payment
for utility bills in India though usage
of Bank and Mobile Money account
has increased over the last few
years
This chart shows that Cash is till the
predominant mode of payment for
agricultural produce though usage
of Bank and Mobile Money Account
has increased over the last few
years
Digital Adoption in India – Key Indicators

12. Maharnav Patir - Independent
Consultant(maharnavp@gmail.com)
12
No comparable data for 2014 is
available. But it is safe to infer that
Bank, Mobile Money Account and
Cash through Third party are the
predominant mode of remitting
money in India
No comparable data for 2014 is
available. But it is safe to infer that
Bank, Mobile Money Account and
Cash through Third party are the
predominant mode of receiving
remittance money in India
10%
0% 0% 0% 0% 0% 0%
11%
57% 56%
7%
24%
2% 3%
0%
10%
20%
30%
40%
50%
60%
Sent Domestic
Remittances in past
year
Sent domestic
remittance through
an FI
Using an Account Through a mobile
phone
In Person and Cash
Only
Through a Money
Transfer service
Through an OTC
service
Sent Domestic Remittances
2011 2014 2017
10%
0% 0% 0% 0% 0% 0%
16%
31% 31%
2%
51%
2% 3%
0%
10%
20%
30%
40%
50%
60%
Received Domestic
Remittances in past
year
Received domestic
remittance through
an FI
Using an Account Through a mobile
phone
In Person and Cash
Only
Through a Money
Transfer service
Through an OTC
service
Received Domestic Remittances
2011 2014 2017
Domestic Remittance

13. Maharnav Patir - Independent Consultant(maharnavp@gmail.com) 13
• WB Findex Survey reflects the % of respondents who report personally receiving any payment from the Govt in the past 12 months
• Government Payments in India come under Direct Benefit Transfer (DBT) and covers payments for MNREGA, Pension Schemes, Welfare Schemes, Scholarships,
Research Grants, PAHAL etc
• As per PMO report , the number of beneficiaries under DBT increased from 290 million in Sep 2015 to 340 million in Aug 2017 (CAGR of 8%)
• 99.99% of DBT payments was made through electronic mode in Aug 2017
12% 12%
13%
10%
11%
12% 12% 12%
11%
9%
13%
12%
14% 14%
15%
13%
14%
8%
16% 16%
11%
14%
14%
15%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
Overall Male In Labor Force Out of Labor
Force
Female Young Adults (15-
24)
Older Adults (+25) Primary Edu or
Less
Secondary Edu or
More
Poorest 40% Richest 60% Rural
Received Govt Payments
2014 2017
Government Payments

14. Thank You !!
Maharnav Patir - Independent Consultant(maharnavp@gmail.com) 14