How does a demat account contribute to financial inclusion? MintGenie explains

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Also Read: Demat Account: How to create long-term wealth? Follow these 6 key steps One key tool that has emerged as a catalyst for advancing financial inclusion is the demat account. In this article, we delve into how a demat account contributes to fostering financial inclusion. Financial inclusion is when everyone can access financial services that can help them build wealth, including savings, credit, loans, equity, and insurance.

Access to financial services plays a crucial role in daily life, enabling individuals and businesses to navigate both anticipated and unforeseen circumstances effectively. By having access to accounts, individuals are more inclined to utilise a range of financial services, including credit and insurance. This accessibility empowers them to establish and grow businesses, invest in education and healthcare, mitigate risks, and withstand financial uncertainties, thereby enhancing their overall well-being.

In 2020, the Reserve Bank of India (RBI) articulated a vision and set key objectives for financial inclusion policies in India. The aim was to expand and sustain financial inclusion at the national level through comprehensive collaboration among all stakeholders in the financial sector. Also Read: How to open a joint demat account? Here's a step-by-step guide The objectives have yielded significant results thus far, with a majority of individuals now holding bank accounts.

This widespread banking access has facilitated seamless fund transfers among people, as evidenced by the recent surge in UPI payments in India. Moreover, citizens now have easier access to credit, with the process simplified, including the ability to apply for credit directly from mobile phones. Additionally, Indians are