The financial inclusion drive of the government is expected to reach out to majority of Indian homes in the upcoming 5 years time.

A study by CII in cooperation with Boston Consulting Group (BCG) said that the penetration of banking services would increase to 80% from present 47% in 5 years.

"It is expected that formal financial penetration will increase from the current 47% to 80% in five years. The financial service providers would be able to unlock a hitherto untapped profit opportunity of Rs 3,500 crore per annum by the fifth year," it said.

The report expressed concerns over the lack of provision of financial services in even basic level to more than half of the Indian population.

The business correspondent (BC) model has indeed enhanced the process of financial inclusion, but still a lot more needs to be done, said the study.

Finance Minister Pranab Mukherjee in his Budget speech last month said: "I had advised banks to provide banking facilities to habitations having a population of over 2000 by March, 2012. The banks have identified about 73,000 such habitations for providing banking facilities using appropriate technologies."