QUALITY OVER QUANTITY? A NEW LENS ON FINANCIAL INCLUSION

Abstract

The Government of India has promoted financial inclusion through programs like PMJDY, insurance schemes, and pension initiatives. While the number of bank accounts has increased, many remain inactive or are used only for government benefits, limiting true financial engagement. This paper argues for a shift from quantity to quality in financial inclusion and proposes a 5-Level Framework to assess active use of financial services, from basic account ownership to full engagement with savings, credit, insurance, and investments. The study also suggests practical measures, such as easing re-KYC procedures and linking account creation with Aadhaar registration, to enhance accessibility and participation. A focus on quality ensures meaningful financial empowerment and sustainable economic development.