scholarly journals Does Access to Bank Accounts as a Minor Improve Financial Capability? Evidence from Minor Bank Account Laws

2021 ◽  
Vol 2021 (072) ◽  
pp. 1-33
Author(s):  
J. Michael Collins ◽  
◽  
Jeff Larrimore ◽  
Carly Urban ◽  
◽  
...  
Keyword(s):  
Financial Services ◽  
Negative Consequences ◽  
Policy Goal ◽  
Bank Account ◽  
State Laws ◽  
Alternative Financial Services ◽  
Short Run ◽  
Credit Scores ◽  
Bank Accounts ◽  
A Minor

Banking the unbanked is a common policy goal, but should this include access to bank accounts for minors? This study estimates how teenagers' access to bank accounts affects their financial development. Using variation in state laws, we show policies that permit access to independently-owned accounts increase account ownership at age 16 through age 19, although by age 24 those young adults are banked at similar rates to teens who grew up in states that do not allow minors to own accounts independently. Teens who had access to independently-owned accounts use fewer high-cost alternative financial services (like payday loans) through age 20—but are then more likely to use AFS, particularly check-cashing services, from age 21 through 24. Using credit records, we show that access to non-custodial accounts has no effects on credit scores in the short-run, but lower credit scores and more loan delinquencies at ages 21 through 24. While these state laws promote financial inclusion for teenagers, the young people who take on accounts may experience negative consequences in the longer run.

Case study India’s First Women’s Bank - Bharatiya Mahila Bank

2014 ◽  
Vol 1 (1) ◽  
Author(s):  
Jitendra Ahirrao
Keyword(s):  
Public Sector ◽  
Rural Areas ◽  
Financial Services ◽  
Economic Empowerment ◽  
Women Empowerment ◽  
Bank Account ◽  
Safe Place ◽  
Job Opportunities ◽  
Bank Accounts

India launched the Bhartiya Mahila Bank (BMB), its first public sector bank for economically empowering millions of women across the country, in 2013. This bank is meant for those women who do not have access to basic financial services such as bank accounts or loans. Access to a bank account is essential for women's economic empowerment as it provides a safe place to save money and opens up a channel to credit which can be used for investing in education, property or in a business. BMB is a good beginning in the direction of women empowerment in India. Nevertheless, pro-active emphasis should be on rural areas and less-educated / illiterate women folk irrespective of their earnings. It will create more job opportunities for women and will pay special attention to the weaker and more neglected sections of women.

scholarly journals Behavioural and Psychological Factors That Influence the Usage of Formal Financial Services Among the Low Income Households

2020 ◽  
Vol 11 (5) ◽  
pp. 326
Author(s):  
Binoy Thomas ◽  
P. Subhashree
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Psychological Factors ◽  
Financial Inclusion ◽  
Bank Account ◽  
Policy Makers ◽  
Actual Usage ◽  
Alternative Financial Services ◽  
Recent Initiative ◽  
Low Income Households

The emerging economies need to frame and implement effective financial inclusion policies for sustainable development and growth. Recent initiative of India that every Low Income Households (LIHs) has a bank account is a sweeping success; but the flipside is that half of these accounts are either inactive or less active, which raises concern. In this context, this research attempts to identify the behavioural and psychological factors that influence the usage of formal financial services (FFS) among LIHs in India. Theory of Planned Behaviour is used as the base theoretical model, in which ‘Habit’ was introduced as a moderating variable that interacts with Behavioural Intention to influence Actual Usage. Data was collected from 253 respondents and analysed using SmartPLS 3.0. This study revealed that the exogenous variables Attitude, Subjective Norms, Perceived Behavioural Control positively influenced the intention to use FFS; moreover, Habit negatively moderated the BI-AU relationship. Therefore, the policy makers on financial inclusion drive may consider these identified factors in their mission to improve the usage of FFS among LIHs, and to curtail the informal or alternative financial services.

scholarly journals SECTORAL ANALYSIS OF BANKS ON TRENDS OF OPENING ACCOUNTS FOR PRADHAN MANTRI JAN DHAN YOJNA PHASE I (PMJDY)

2017 ◽  
Vol 5 (1) ◽  
pp. 183-197
Author(s):  
Trilok Nath Shukla
Keyword(s):  
Phase I ◽  
Financial Services ◽  
Prime Minister ◽  
Financial Inclusion ◽  
Bank Account ◽  
Direct Supervision ◽  
Debit Card ◽  
Sectoral Analysis ◽  
Ministry Of Finance ◽  
Bank Accounts

Most recently a national mission on financial inclusion called “PRADHAN MANTRI JAN - DHAN YOJANA” was launched on the 28th of August 2014. Under the direct supervision of the Indian Prime Minister and the Department of Financial Services, Ministry of Finance, the objective of this mission is to enroll over 70 million households and open their bank accounts along with providing them as a first step a RuPay debit card with a Rs. 1,00,000/- accident cover. In the due course of time the plan is to also cover these account holders with insurance and pension products. About 60% of the population in India does not have access to a bank account. PMJDY aims at providing bank account to single household above the age of 10 years who do not have bank account and will be opened with zero balance. The household opening the account will be benefited with one lakh accidental cover and Thirty Thousand life cover without premium. People opening account under this scheme will also avail overdraft facility up to five thousand from the bank after satisfactory conduct of the account for 6 months.

The U. S. Dollarization Approach to Regional Currency Consolidation: Second-Best in the Short Run, Doomed in the Long Run

2011 ◽  
Vol 30 (119) ◽  
Author(s):  
George M. Von Furstenberg ◽  
Alexander Volbert
Keyword(s):  
Latin America ◽  
Financial Services ◽  
Free Movement ◽  
Monetary Unions ◽  
International Currency ◽  
Second Best ◽  
Long Run ◽  
Short Run ◽  
Free Movement Of Capital

Free movement of capital and trade in financial services are driving regional currency consolidation. We compare the relative merits of adopting an international currency unilaterally or multilaterally. While EMU is the exemplar of the multilateral approach characterized by assured seignior age sharing and co-management of the joint monetary asset, unilateral monetary unions are represented by the proposed formal dollarization of some countries in Latin America. This paper finds that while such dollarization could be useful for the period ahead, it carries the seeds of its own destruction because peripheral countries that lose their currency need not support this one-sided arrangement indefinitely

Bank Branches and COVID-19: Where are Banks Closing Branches during the Pandemic?

FEDS Notes ◽  
2021 ◽  
Vol 2021 (3025) ◽  
Author(s):  
Kimberly Kreiss ◽  
Keyword(s):  
Financial Services ◽  
Online Banking ◽  
Bank Account ◽  
Bank Branches ◽  
Steady Rate

In the decade prior to the COVID-19 pandemic, bank branches were closing at a steady rate. Additionally, households with a bank account increasingly adopted mobile or online banking for at least a portion of their banking needs. As COVID-19 dramatically changes the desire and willingness for consumers to have in-person interactions, it may accelerate both of these trends and lead to a permanent shift in how people access financial services.

scholarly journals ON THE ECONOMIC STUDIES CONNECTED WITH THE USE OF ELECTRONIC MONEY IN UKRAINE

2016 ◽  
Vol 15 ◽  
pp. 331-339
Author(s):  
T. V. Moroz
Keyword(s):  
Electronic Medium ◽  
Electronic Money ◽  
Bank Account ◽  
Electronic Form ◽  
Bank Accounts ◽  
Economic Studies

The article deals with peculiarities that must be taken into account while conducting forensic economic examinations connected with studying financial and credit transactions with the use of electronic money. Electronic money is a monetary obligation of the issuer in an electronic form that is stored on an electronic medium in the user’spossession. This medium can be a microprocessor card, the user’s computer, a server of the electronic money clearance system where the user’s electronic money is stored, etc. In the electronic money clearance systems bank accounts are used only when the money is debited or withdrawn from the system. At the same time these bank accounts are the issuer’s and not the user’s accounts. When electronic money is issued the user’s traditional money is debited to the issuer’s bank account. When the electronic money is used in payment, traditional money is written off the issuer S bank account and is paid to the bearer. The article provides a list of normative and legislative acts regulating the main aspects of conducting the studies.

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