19% of country's population financially excluded says report

India's financial services ecosystem lags in terms of physical infrastructure and has failed to reach the poor, with more than 19 per cent of the population unbanked or financially excluded, says a report.

The Assocham-EY joint study said however, the government and the Reserve Bank of India have made several concentrated efforts to promote financial inclusion.

These efforts include launch of co-operative banks and regional rural banks, introduction of mandated priority sector lending targets, formation of self-help groups, appointment of business correspondents by banks to provide door-step delivery of banking services, Assocham said.

"These initiatives helped to bring in a large section of the unbanked population under the formal financial credit system. However, a significant portion of India's population still remains devoid of access to basic formal credit facilities mainly due to lack of last mile connectivity," the chamber said.