(LiveMint)
Aadhaar has emerged as an enabler for financial inclusion with 76% to 95% of new accounts opened in different states relying on biometric identification but steps are needed to improve continued usage of these bank accounts, says a survey that analysed three-year data from rural Andhra Pradesh, Rajasthan, and West Bengal.
The survey, State of Aadhaar Report 2017-18 done by international research firm IDinsight covering 13,669 household members in 21 districts of the three states between November 2017 and February 2018, noted that only 45-67% of account holders in these states continue to use them.
Zero-balance accounts opened under the financial inclusion scheme Jan Dhan Yojana is a key tool for the government to deliver entitlements to the intended beneficiary. The survey sought to find out whether Aadhaar had aided unbanked individuals or households in opening a bank account and whether Aadhaar had made bank accounts easier to use, resulting in fewer dormant accounts.
