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Banking for the Poor: Evidence From India

Robin Burgess, Rohini Pande and Grace Wong
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Grace Wong: The Wharton School, University of Pennsylvania,

Journal of the European Economic Association, 2005, vol. 3, issue 2-3, 268-278

Abstract: State-led credit and savings programs have been implemented in numerous low income countries, but their success in reaching the poor remains widely debated. We report on research that exploits the policy features of the Indian social banking program to provide evidence on this issue. State-led branch expansion into rural unbanked locations reduced poverty across Indian states. In addition, the enforcement of directed bank lending requirements was associated with increased bank borrowing among the poor, in particular low caste and tribal groups. Copyright (c) 2005 The European Economic Association.

Date: 2005
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Journal of the European Economic Association is currently edited by Xavier Vives, George-Marios Angeletos, Orazio P. Attanasio, Fabio Canova and Roberto Perotti

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