Global Findex 2025 Report on Bank Account Inactivity in India
The World Bank's ‘Global Findex 2025’ report highlights significant data on bank account inactivity in India, with specific insights into the contributing factors and comparisons with other economies.
Key Findings
- High Inactivity Rate in India:
- 35% of bank account holders in India had inactive accounts in 2021.
- This rate is seven times higher than the 5% average for all developing economies, excluding India.
- Jan Dhan Yojana's Role:
- Attributed to the high inactivity rate due to accounts opened under the scheme.
- 450 million Indians were brought into the formal banking system since its launch in August 2014.
- Reasons for Inactivity:
- Distance from financial institutions and lack of trust.
- Lack of need and insufficient money to use an account.
- 30% of respondents were not comfortable using the account independently.
- Gender Disparity:
- 42% of women account holders had inactive accounts compared to 30% of men.
- More men (34%) reported discomfort in using an account alone compared to women (26%).
Comparative Insights
- Developing Economies:
- 9% of adults had inactive accounts on average.
- Account inactivity decreased from 17% in 2017 to 12% in 2021.
- High-Income Economies:
- Virtually all account holders had active accounts in 2021.
Global Context
- Globally, 76% of adults had an account in 2021.
- From 2011 to 2021, account ownership increased by 50%, from 51% to 76% of adults worldwide.
The report is based on a survey of approximately 128,000 adults across 123 economies during the Covid-19 pandemic and addresses the use of digital payment methods.
