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Cell banking for financial inclusion
The move is part of the UPA regime's initiative to ensure financial inclusion of the poor. The government is keen to make sure that poor with mobile phone connections can carry out financial transactions using their handsets, including receipt of wages and payments, even if they do not have bank accounts.
As of now, almost 41% of the country's adult population does not have a bank account. This, the government feels, is a major roadblock in delivering financial services to the poor, especially in rural areas. In some cases, such as the National Rural Employment Guarantee Scheme, attempts are being made to provide wages through smart cards.
The number of mobile phone connections in India is estimated at about 440 million, reaching roughly 38% of the country's population.
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