G2P Payments: Concerted Efforts Will be the Key

Paper
Date Published: 
Nov 2015
Author: 
Singh, L. & Pathak, A.
Publisher: 

Analyzing the obstacles to achieving financial inclusion through G2P payments in India

There is increasing evidence from countries such as Pakistan, Brazil, Colombia, Mexico and South Africa that the government-to-person payments offered through digital and branchless banking channels could be a stepping stone to financial inclusion. The Government of India and the Reserve Bank of India have adopted a similar path to financial inclusion in India.

While the target beneficiaries and the channels used under social benefit schemes, subsidy programs and the Financial Inclusion Plan are the same, financial inclusion is not being achieved because the efforts of the stakeholders driving these initiatives are not aligned.

MicroSave India Focus Note #124 analyzes the demand as well as supply-side impediments to realizing the potential of G2P payments to further the cause of financial inclusion in India.

Type: 
Paper
Region: 
South Asia
Country: 
India