4  BIS Review 40/2008  Table II Access to Finance – 2006 Indicator  Pakistan  Bangladesh  India  Nepal  Demographic branch penetration (branches per 100,000 people)  4.73  6.37  1.73  4.96  7.69  9-28  Demographic ATM penetration (ATMs per 100,000 people)  0.29  1.93  0.28  1.25  5.67  39-167  Deposit accounts per 1,000 people  255.23  442.87  110.40  171.14  1117.82  976-2418  Loan accounts per 1,000 people  61.11  78.00  10.83  31.78  364.22  248-776  Geographic branch penetration (branches per 1000 sq. km.) 44.53  23.46  2.97  9.67  15.81  1-57  2.71  7.11  0.48  2.44  11.65  3-252  Access to Finance  Geographic ATM penetration (ATMs per 1000 sq. km.) Sri Lanka  Benchmark  Source: Getting Finance in South Asia Phase IV – 2008 World Bank  Visible areas of financial exclusion Financial exclusion and denial of access to credit exists in two clear areas, in particular, in formal credit markets and the payment system. According to available data, in Sri Lanka, at least 40 per cent of the farm households do not have access to formal sources of credit or bank accounts. The reliability of this number depends on the type of survey done and the source of information. Nevertheless, it is a significant number to work with.
Following the efforts made by the Central Bank of Sri Lanka, cheques/bank drafts are now being cleared on t+1 or t+2 in most parts of the country, and that has clearly enhanced access to finance through retail transactions. The receipt of remittances through non-bank sources or various money transfer systems has also been enhanced following  BIS Review 40/2008  5  countrywide IT and payment system advancements. In more recent years, therefore, financial exclusion in Sri Lanka has been greatly reduced. Initiatives for financial inclusion of women There are some initiatives taken, not only by Sri Lanka, but also in the South Asian region towards financial inclusion. By 2005, micro finance institutions covered at least 35mn of some 270mn people in the South Asian region and met around 15% of the overall credit requirements of low-income families. In Sri Lanka, the coverage is particularly high at 60%. The high outreach in Sri Lanka is based on an extensive network of community-based organizations that receive considerable government subsidies. Almost all rural financial institutions in Sri Lanka have provided easy access to women, particularly in the villages, estates and among fishing communities. Financial institutions that are directly involved in this area, are the licensed commercial banks, licensed specialized banks, micro finance institutions, cooperative rural banks, the SANASA Thrift and Credit Cooperative Movement, SEEDS and other non-governmental organizations.