Abstract

http://ssrn.com/abstract=1725103
 


 



The Benefits to Government of Connecting Low-Income Households to an E-Payment
System: An Analysis in India


Rajiv Lochan


McKinsey & Co. Inc.

Ignacio Mas


Independent

Daniel Radcliffe


Bill and Melinda Gates Foundation

Supriyo Sinha


McKinsey & Co. Inc.

Naveen Tahilyani


McKinsey & Co. Inc.

December 14, 2010

Lydian Payments Journal, No. 2, December 2010

Abstract:     
Governments around the world have within their hands a powerful catalyst to promote financial inclusion – their own payment interaction with low-income households. Indeed, government is frequently the largest micro-payer and bill payer in the country. Delivering government payments electronically will not only connect low-income households to an electronic grid, but the government itself will derive sizable benefits from automating these flows. A recent study by McKinsey, which was commissioned by the Bill & Melinda Gates Foundation, explores the inefficiencies in India’s government payment systems and estimates the monetary and non-monetary benefits of making all of India’s government payment flows electronic. The study finds that automating these payments could save the Indian government US $22.4 billion per year, equal to nearly 8 percent of the total payment flows between the government and its citizens.

Number of Pages in PDF File: 8

Keywords: electronic payments, financial access, financial inclusion, mobile banking, government payments

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Date posted: December 15, 2010  

Suggested Citation

Lochan, Rajiv and Mas, Ignacio and Radcliffe, Daniel and Sinha, Supriyo and Tahilyani, Naveen, The Benefits to Government of Connecting Low-Income Households to an E-Payment System: An Analysis in India (December 14, 2010). Lydian Payments Journal, No. 2, December 2010. Available at SSRN: http://ssrn.com/abstract=1725103

Contact Information

Rajiv Lochan
McKinsey & Co. Inc. ( email )
Konigsallee 60C
Chicago, IL Quebec 60603
United States
Ignacio Mas (Contact Author)
Independent ( email )
No Address Available
Daniel Radcliffe
Bill and Melinda Gates Foundation ( email )
P.O. Box 23350
Seattle, WA 98102
United States
Supriyo Sinha
McKinsey & Co. Inc. ( email )
Konigsallee 60C
Chicago, IL Quebec 60603
United States
Naveen Tahilyani
McKinsey & Co. Inc. ( email )
Konigsallee 60C
Chicago, IL Quebec 60603
United States
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