IT IS midmorning in Kurla East, a suburb of Mumbai, and Jeejabai is opening her first bank account. She stands at the counter of a busy kiosk run by Geosansar, one of the so-called “business correspondents” that act as local agents for India’s big banks. Jeejabai works as a housemaid earning 2,500 rupees ($40) a month. She wants to save for her children now that her husband has found work as a watchman. The Geosansar clerk scans her biometric identity card, takes her fingerprints on a device linked to his laptop and types in her details. He issues a stamped-and-dated slip with Jeejabai’s new account number on it. It all takes just ten minutes.The bustle at the kiosk in Kurla East is in response to the government’s drive to provide banking to the poor. It is looking for a direct and reliable means to support their incomes, which would allow it to do away with costly and distorting subsidies. The prime minister, Narendra Modi, launched the initiative at the end of August, setting a target of 75m new accounts by Republic Day, January 26th.The scheme’s initial goal has been surpassed: 120m accounts have been...
from The Economist: Finance and economics http://ift.tt/1A1QfW7
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