Account inactivity in India—is there a problem?

MSC dispels some myths on the issue of high account dormancy in India compared to other countries.

Findex reports 35% account inactivity in India. While many experts presume it is because of the number of PMJDY accounts, the reasons could include many others. PMJDY may not be the reason for higher dormancy in India as the reported dormancy in PMJDY is 17%. In this note, the authors discuss potential reasons for account dormancy and advocate a shift in our approach to financial inclusion.

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Written by


Akhand Tiwari


Graham Wright

Group Managing Director